44 Photograph taken on February 7, 2007 at <strong>Solvay</strong> Solexis, Bollate, Italy. <strong>Solvay</strong> Global Annual Report 2007 “ In June 2007 SolVin signed a joint venture agreement with Sibur to set up the RusVinyl company and build an integrated 330 kt/year PVC plant (extendable to 500 kt/year) at Kstovo (Russia). „ Davide Paleari Mechanical Testing Specialist
SOLVERA ® and FLUORLINK ® brand names, are used principally as water-repellent and anti-grease agents in wrapping paper and textiles. Our H-GALDEN ® high-performance, low environmental impact heat-transfer fluid will also benefit from this capacity extension. <strong>Solvay</strong> Solexis and Thin Film Electronics ASA (a Norwegian company based in Oslo) have concluded an agreement to develop materials for printed electronic components. The new micronized polytetrafluoroethylene (PTFE) powder plant currently under construction at Changshu in China will be operational in the first quarter of 2008. This micronized powder, marketed under the POLYMIST ® brand name, is used in various complex applications like cosmetics, high gloss inks and high performance lubricants. Finally, two world class production units for our HYFLON ® et ALGOFLON ® fluoropolymers have started up at Spinetta (Italy). <strong>Solvay</strong> Advanced Polymers, based at Alpharetta (USA), has just brought on stream a production expansion for its RADEL ® R polyphenylsulfones and launched a new range of SOLVIVA plastics that meet the very demanding specifications for medical implants. These applications have required all production chains to be brought into conformity with the international production standards that apply in the medical world. The ultrapolymers segment has been significantly strengthened with the start-up of a pilot polyether-ether ketone (PEEK) unit at Alpharetta (USA) and the construction of an industrial scale PEEK platform at Panoli (India), to be rolled out in early 2008. A new PVDC (polyvinylidine chloride) latex production unit is to be built at SolVin’s Tavaux (France) site, which now houses the entire production of this polymer. Under the trade name DIOFAN ® , this latex is used as a barrier material for coating paper or plastic films for integrity-critical packaging situations, in particular in the food and pharmaceutical sectors. In 2007, demand for specialty polymers was particularly strong in pharmaceutical packaging, semi-conductors, retail electronics, medical applications and water treatment. By contrast, auto markets in Europe and the USA were weaker. In most cases, our sales have grown faster than their respective market segments, including automotive, thanks to the width of our product ranges and our capacity for innovation. Today, more than 30% of sales are of products brought to market during the past five years. Our strong R&D portfolio, our control of both fixed and variable costs (which improves our competitiveness, for example by improving the efficiency of our polymerization processes), our initiatives in HSE (Health, Safety and Environment) and the use of Best Available Technologies (BAT) in our plants, should together promote the growth and improve the performance of our specialty polymers in 2008 and 2009. Globally speaking, specialty polymers are a major contributor to sustainable growth. Significant weight reductions in cars and airplanes contribute to fuel savings. With their constantly improving mechanical strength and high temperature resistance, specialty polymers are steadily replacing other, more energy-consuming materials. Finally, they permit the development of new, highly sophisticated applications, for example in water treatment or the medical field, thereby contributing to the well-being of a growing number of individuals in the world. Polyolefin compounds fared variously in their different markets. Padanaplast (Italy), which manufactures and markets polyethylene-based compounds, saw its sales of compounds for both piping (replacing copper in domestic applications) and specialty cables increase by double-digit figures. 75% of sales are outside Italy, to 70 countries across the world. <strong>Solvay</strong> Engineered Polymers (SEP) in the United States is active in polypropylene and elastomer compounds, mainly for the North American automobile market. Agreement was reached to sell the entire subsidiary to Basell, the leading world producer of polypropylene and advanced polyolefins. The principal reason is that this activity today fits less well with the strategy of the Sector, which is expanding in very high performance polymers with high added value markets, and selectively in vinyls. This transaction should be finalized in the first quarter of 2008. Inergy Automotive Systems (50/50 joint venture with Plastic Omnium in fuel systems) The world leader in fuel systems for the automotive industry, with around 13 million systems sold every year, Inergy Automotive Systems experienced a slight fall (1.2%) in its volumes and sales in 2007. Even so, thanks to cost-control initiatives, the operating margin was up significantly from 2006. This resilience of profits is due to major efforts to boost competitiveness, with reductions Plastics Sector <strong>Solvay</strong> Global Annual Report 2007 Plastics 45
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