Solvay S.A. (rue du Prince Albert 33, B-1050 Brussels) is in negotiations to sell its plastic coating operations Griffine Enduction (Nucourt, France) and Gorvi (Pamplona, Spain) to Mecaseat. Griffine Enduction manufactures coated fabrics for the automotive, furniture, leatherware and shoe industries as well as for some technical applications. Its 1997 sales are projected to be in the region of FRF 450m (BEF 2.7bn). Gorvi produces a similar range of products and has achieved sales of ESP 3bn (BEF 750m). The deal, which is expected to be finalised by the end of November, forms part of Solvay's strategy to focus on specific processing operations where it has competitive advantage. For Mecaseat, a holding company controlling several industrial subsidiaries in Belgium and France, the acquisition will allow it to strengthen its position in the coating sector, particularly in the automotive and clothing market where it is not yet strong. At present its core activity is in supplying to the furniture and bedding industry. Group turnover is approximately BEF 6bn.

At the same time Solvay and Mecaseat are in negotiations to develop a joint strategy to promote plastic sheeting in the automotive industry. Industrial PVC sheeting is an area which the Solvay group wants to strengthen its position as a world leader. Its 1996 industrial sheeting sales were BEF 22bn of which BEF 3.5bn were in plastic coating.

In a separate announcement Solvay said it was to expand PVC production in Argentina and Brazil. Annual capacity at the PVC unit of Indupa, 51% owned by Solvay, in Argentina is being raised to 210,000 t/y by Q2 1999 from 80,000 t/y, with a further expansion to 240,000 t/y at a later stage. Capacity at the PVC suspension plant of Solvay do Brasil is being increased by 26,000 t/y to some 240,000 t/y to be completed in 1998. The moves reflect the strong growth expected for PVC in the Mercosur region.