Pharmaceuticals Sector - Solvay

36
“ 30 million tonnes of PVC
were consumed worldwide
in 2005.”
Solvay Global Annual Report 2005
Vinyls
(Polyvinyl Chlorides
(PVC), performance
compounds and Pipelife,
a 50/50 joint venture with
Wienerberger in pipes
and fi ttings).
30 million tonnes of PVC were
consumed worldwide in 2005, up
3% from 2004. China again stood
out with growth of around 10%,
consuming almost 7.5 million tonnes
in 2005, more than the whole of
Western Europe.
PVC prices fl uctuated signifi cantly
during 2005, refl ecting both the
supply/demand balance and costs
of raw materials and utilities.
After peaking at the end of 2004,
PVC prices reached a low in
summer 2005 before beginning to
recover signifi cantly from September
onwards, owing to major production
losses in the USA from Hurricanes
Katrina and Rita.
Vinyls margins, excellent during the
fi rst quarter of 2005, deteriorated
signifi cantly during the second
quarter, recovering later from
September onwards. Average
results for Vinyls for the year as a
whole remained at an excellent level,
and above those of 2004.
In a highly competitive European
situation, SolVin (owned 75% by
Solvay and 25% by BASF) used the
reliability of its plants and its high
degree of raw materials integration
to maximize production. SolVin
continued its quest for competitiveness
by closing down its modestsized
Ludwigshafen (Germany) unit
at the end of 2005, and bringing
on line new capacities at its
Jemeppe (Belgium) and Rheinberg
(Germany) sites. SolVin’s profi ts
fully refl ect its excellent competitiveness.
Eastern Europe also contributed
very signifi cantly to demand for
PVC made in Western Europe,
with strongly rising imports of
semi-fi nished products (profi les,
fl oor covering, piping and fi ttings)
and a shortage of PVC resins in the
also fast-growing Russian market.
The fi fth report of Vinyl 2010,
the voluntary accord of the PVC
industry in which Solvay plays an
active part, was published in
May 2005. It shows that the
achievement of objectives for
recycling levels is continuing to
meet the plan. The VINYLOOP ®
unit at Ferrara (Italy) continues to
develop in terms of production
levels, new technology and
applications for recycled PVC,
despite a European economic
environment that remains
unattractive for recycling projects.
During 2005 SolVin continued its
feasibility study for an integrated
world-scale unit in Russia.
Plastics Sector
This would enable it to consolidate
its leadership in Europe and to pursue
its geographic diversifi cation
towards Russia, where demand for
PVC is rising sharply, and which
offers competitive advantages in
terms of raw materials. The feasibility
study should reach the decision
stage in 2006.
In Mercosur, Solvay Indupa
a listed Argentine company in
which Solvay has a majority
shareholding, also enjoyed very
favourable conditions on the
Argentine market. Demand on the
Brazilian market, on the contrary,
suffered from prohibitive interest
rates, which placed a severe rein
on construction investment.
The excellent competitiveness
and the good operating qualities
of the Argentine and Brazilian
installations are key factors which
again generated an excellent result.