Vitro to Sell Quimica Stake to Solutia

Date: 6 December 2005
Source: Schaeffersresearch.com

Date: 6 December 2005

Mexican glass maker Vitro SA said Tuesday it plans to sell its stake in a synthetic materials joint-venture to partner Solutia Inc. of St.

Louis for US$20 million (euro17 million).

In a statement, Vitro said it plans to use cash from the sale of its 51 percent stake in Quimica M to pay down debt. The sale requires regulatory approval in both Mexico and the United States.

Vitro said that 2004 sales at Quimica M totaled US$47 million (euro40 million).

The facility in central Mexican city of Puebla produces polyvinyl butyral for laminated construction and automotive glass.

In a separate statement, Solutia said it has secured commitments from Vitro so that the Monterrey-based company will continue buying plastic interlayers from Quimica.

Vitro - whose main businesses are flat glass, glass containers and glassware - had net debt of US$1.3 billion (euro1 billion) at the end of September. The company has been shedding assets in recent months in an effort to meet those obligations.
600450 Vitro to Sell Quimica Stake to Solutia glassonweb.com

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