The SOLVAY group intends to close its polyvinyl chloride (PVC) production unit in Ferrara (Northern Italy) as from January 1, 1999, in line with its strategy to increase competitiveness of its European PVC activities. The PVC compounds activity will be maintained and expanded on the site.

The PVC market is suffering from global overcapacities which have dramatically increased lately in the wake of the Asian crisis and its repercussions all around the world.
In this context, only the most competitive plants will survive. The Ferrara plant unfortunately lacks competitiveness due to its small size (annual capacity of 95,000 tons) and its insufficient raw material integration. Furthermore, and in spite of the efforts to improve the plant's performance, the solution of these structural handicaps appeared not to be economically sustainable.

The operation would strengthen overall competitiveness of SOLVAY's Vinyls Business Unit, by concentrating on its bigger and better integrated plants.

The PVC plant closure would make about 150 people redundant; the company intends to start consultation with the employees and their representatives in order to investigate possible solutions.
As stated above, SOLVAY BENVIC (Italia) will maintain its PVC compounds activity in Ferrara and will develop it through appropriate new investments. The existing Italian commercial services will remain in Ferrara. The customers would be supplied by SOLVAY's other European PVC plants (in France, in Germany, in Spain and in Belgium).

SOLVAY is an international chemical and pharmaceutical group, based in Brussels (Belgium) and present in 46 countries with over 34,000 employees. In 1997 its consolidated sales amounted to BEF 311 billion (USD 8.4 billion) generated by its four sectors of activity: Chemicals, Plastics, Transformation and Pharmaceuticals.