Recurring pretax profits (REBIT) in the plastics division of Solvay (Brussels / Belgium; www.solvay.com) increased by 4% year-on-year to EUR 389m in 2005. Sales were up 13%, at just above EUR 3.5 bn. Operating margin in the division was slightly under 11%, unchanged on 2004. The company said the gains in sales were not fully reflected in increased profits for the division due to start-up costs for new units and raw material price increases.

Despite sales increasing by 13% in the fourth quarter of 2005, to EUR 902m, the recurring operating result fell by 19% from a very high level in Q4 2004, in which vinyls peaked, to EUR 93m. After a gradual decline in Q2 2005, vinyls chain margins improved from September, the company said.

Specialty Polymers including the Inergy jv with Plastic Omnium (www.plasticomnium.com) activities recorded 8% growth in sales, despite weaknesses in the automotive and semiconductor markets. Solvay increased its research work in the segment during 2005 and embarked on production capacity expansions, implementing projects in the USA and a new technical centre in Shanghai, China. It has also agreed to acquire the plastics division of Gharda in India, giving it access to PEEK (see Plasteurope.com Web of 05.01.2006), and speciality materials producer Mississippi Polymer Technologies (www.mptpolymers.com) – see Plasteurope.com Web of 19.01.2006.

In vinyls, Thai affiliate Vinythai doubled its capacities for salt, chlorine, EDC and VCM, and in Brazil capacity expansions for VCM and PVC came on stream.

Solvay Group reported REBIT up 23% compared with 2004, at EUR 912m, on sales of EUR 8.56 bn, up 18% on the year. Sales and profits improved across all three group sectors – pharmaceuticals, chemicals and plastics.

e-Service:
Detailed Solvay information on the fourth quarter and the full year 2005 as PDF document (336 KB)
Solvay presentation 2005 as PDF document (1,026 KB)