Solvay, Belgium, Buying Alkali Works in Russia

08.09.2009 — News

THE PERM KRAI.

One of the largest companies of the alkali industry in Russia is changing its proprietor. Solvay, a Belgian company, has signed an agreement on 8 September 2009 with a Cypriot offshore company Sodium Group Investments Limited on purchasing the majority stake in OJSC Berezniki Alkali Works and CJSC Berkhimprom.

The investor liaison office of Solvay s.a informed RusBusinessNews that the shares being purchased are worth around 160 million Euro. Solvay is planning to complete the deal in the beginning of 2010. The payment for shares will be spread over a three year period. During this time Sodium Group Investments Limited will remain a minority shareholder in the plants. Currently SGIL owns 92.7% of shares in OJSC Berezniki Alkali Works and 100% of shares in CJSC Berkhimprom.

According to Solvay representatives this purchase is a part of the company expansion strategy for the Russian market. The Berezniki Alkali Works with the capacity of 500 thousand tons of products per year is one of the largest producers of calcined soda in Russia. The second quarter results of 2009 demonstrate that the plant has about 17.9% of the Russian calcined soda market and 14% in the CIS countries. The company’s turnover in 2008 amounted to 3.2 billion roubles, and the net profit exceeded 383 million roubles.

Solvay s.a. is a large multinational group that includes more than 400 ventures in more than 50 countries. In 1886 this Belgian company had built the Berezniki Alkali Works, the first Russian plant making caustic soda.