A. de C.V.'s 51 percent stake in Vitro Plan's joint venture with Solutia, known as Quimica M, S.A. de C.V.As a result, Solutia is now the sole owner of Quimica M. Additionally, Solutia and certain affiliates of Vitro Plan have entered into agreements under which Solutia will supply those Vitro Plan affiliates with their requirements for Saflex(R) and Vanceva(R) PVB interlayer products. Both the purchase and supply agreements became effective March 1.
With its buyout of Vitro Plan, Solutia is the sole owner and operator of the Quimica M PVB interlayer plant in Puebla, Mexico. These interlayers are used by major glass producers such as Vitro to make laminated glass for use in automobiles and buildings.
"This acquisition reflects our commitment to meet the growing global demand for our Saflex and Vanceva PVB interlayers. The Puebla plant will now make PVB interlayers not only for Vitro Plan and other valued Mexican customers, but also for our customers around the world," said Luc De Temmerman, president of Solutia's Performance Products Division. "The Puebla plant produces world-class products from a very competitive cost position. Therefore, we have plans to invest in new capacity as well as additional capabilities, which will enable us to begin manufacturing new products that are on the leading edge of technological development."
Jeffry N. Quinn, chairman, president and CEO, added, "We are relying on our Laminated Glazing Interlayers (LGI) business to generate significant profitable revenue growth for Solutia, both now and well into the future. This acquisition, in combination with the new PVB interlayer plant we are building in Suzhou, China, demonstrates our ongoing commitment to realizing this potential."
The Puebla plant operates state-of-the-art PVB interlayer manufacturing lines using the same Solutia technology used at other Solutia production sites. In addition to the Puebla plant, Solutia's LGI business manufactures PVB interlayers at Ghent, Belgium; Sao Jose Dos Campos, Brazil; Springfield, Mass., USA; and Trenton, Mich., USA. It also has a PVB finishing center, distribution center and regional customer service center in Singapore. The company's newest PVB interlayer plant, being constructed in Suzhou, China, is scheduled to begin production in mid 2007.
Solutia Completes Buy Out of Mexican Joint Venture Partner
ST. LOUIS and PUEBLA, Mexico, March 2 /PRNewswire-FirstCall/ -- Solutia Inc. (OTC Bulletin Board: SOLUQ), the world leader in the production and sale of polyvinyl butyral (PVB) interlayers, today announced it has completed its purchase of Vitro Plan, S.