EVC
Crisis at Europe´s PVC market leader reaches new heights / CEO and CFO resign
The crisis at Europe´s PVC market leader, European Vinyls Corporation (EVC, B-1160 Brussels, www.evc-int.com), appears to have heightened. In October, the group announced it had ended talks with German rival Vestolit GmbH (D-45764 Marl) about a takeover and that it expected an operating loss for both the third and fourth quarters (see Plasteurope.com 21, 2000). Now, in what appears to be a radical shake-up, EVC reports that both chairman/CEO Ettore dell´Isola and chief financial officer (CFO) Nigel Taylor have resigned their positions with immediate effect. A new management board has been appointed, to be headed by Jacques Hurkmans as chairman/CEO and Kenneth Tjon as CFO.
Hurkmans comes from management consultants Arthur D. Little in The Netherlands, where he was vice president and managing director. Tjon is a partner at Rotterdam-based Value Enhancement Partners, a private equity firm specialising in identifying, analysing, acquiring, reorganising and integrating acquisition candidates. The two new executives are scheduled to take office in January 2001, following approval by the supervisory board. Dell´Isola and Taylor will continue to serve in advisory functions until the end of this year.
EVC said its new managing board, which will also include existing members David Rolph and Marino Uberti, will have responsibility for restoring EVC to profitability, undoubtedly a challenge, given the PVC market´s softness and the company´s existing debt burden (EUR 235m at the end of H1 2000). A team of “turnaround specialists” has been engaged to guide restructuring measures agreed on earlier and is expected to make its report in January.
In October, EVC said it was in negotiations with creditors about debt rescheduling and was in “discussions and negotiations” about improving purchasing costs and implementing an “aggressive restructuring and cost reduction plan.” Savings of EUR 20m in fixed costs to be achieved within six months had been identified. The group said it planned to focus in future on its core VCM and suspension PVC activities, while considering divestment of non-core businesses such as compounds, rigid films (including packaging films) and emulsion PVC.
Hurkmans comes from management consultants Arthur D. Little in The Netherlands, where he was vice president and managing director. Tjon is a partner at Rotterdam-based Value Enhancement Partners, a private equity firm specialising in identifying, analysing, acquiring, reorganising and integrating acquisition candidates. The two new executives are scheduled to take office in January 2001, following approval by the supervisory board. Dell´Isola and Taylor will continue to serve in advisory functions until the end of this year.
EVC said its new managing board, which will also include existing members David Rolph and Marino Uberti, will have responsibility for restoring EVC to profitability, undoubtedly a challenge, given the PVC market´s softness and the company´s existing debt burden (EUR 235m at the end of H1 2000). A team of “turnaround specialists” has been engaged to guide restructuring measures agreed on earlier and is expected to make its report in January.
In October, EVC said it was in negotiations with creditors about debt rescheduling and was in “discussions and negotiations” about improving purchasing costs and implementing an “aggressive restructuring and cost reduction plan.” Savings of EUR 20m in fixed costs to be achieved within six months had been identified. The group said it planned to focus in future on its core VCM and suspension PVC activities, while considering divestment of non-core businesses such as compounds, rigid films (including packaging films) and emulsion PVC.
30.11.2000 Plasteurope.com [17021]
Published on 30.11.2000