Solvay announces today that the Board of its affiliate Solvay Indupa has approved a further USD 135 million investment program to expand and increase the competitiveness of its vinyls production plant of Santo Andre, Brazil. This second stage of expansion, following the plan announced in August 2006, comprises the creation of an integrated plant to produce ethylene with ethanol originating from sugar cane. Ethylene is one of the two main feedstocks needed to manufacture polyvinyl chloride (PVC) - together with chlorine, which is produced through a saltbased electrolysis process.

Santo Andre would be the first industrial project in the Americas implementing renewable resources for the production of PVC. This innovation will prevent the emission of large quantities of C02 into the atmosphere.

Solvay Indupa’s ambition is to complete the expansion of Santo Andre by 2010. The plant would then have an installed capacity of 360,000 tons/year of PVC; 360,000 tons /year of vinyl chloride monomer (VCM), 235,000 tons/year of Caustic Soda and 60,000 tons/year of bio-ethylene.

Solvay Indupa is also studying with Argentinean energy group Albanesi S.A. the construction of a 165 megawatt combined cycle electrical power plant on Solvay Indupa’s site in Bahia Blanca, Argentina. The project would require an investment of USD 135 million and would provide for a reliable and competitive coverage of the site’s entire energy needs.

In order to finance these investments, Solvay Indupa is considering a capital increase of approximately USD 130 million, to be placed in local and international.

SolVin combines the competences of Solvay and BASF in the European vinyls sector.
The synergies achieved in know-how and organization, the complementarities of product ranges as well as upstream integration have built up SolVin as a leader on the PVC and PVDC markets. The joint venture has operations in France, Germany, Spain and the Benelux countries and a total annual production capacity of 1.3 million tons of PVC, with nearly 2000 employees. Solvay owns 75% of SolVin and BASF, 25%. For further information, visit www.solvinpvc.com .

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. BASF has approximately 95,000 employees and posted sales of €52.6 billion in 2006. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.

SOLVAY is an international industrial Group active in Chemistry. It offers a broad range of products and solutions that contribute to improving quality of life. The Group is headquartered in Brussels and employs about 19,000 people in 50 countries. In 2009, its consolidated sales amounted to EUR 8.5 billion. Solvay is listed on the NYSE Euronext stock exchange in Brussels (NYSE Euronext: SOLB.BE - Bloomberg: SOLB.BB - Reuters: SOLBt.BR). Details are available at www.solvay.com.

NOTES TO THE EDITORS:
The Solvay group is one of the world’s leading vinyls producer, ranking second in Europe and third globally. In addition to SolVin in Europe, the Group’s activities in polyvinyl chloride (PVC) and other products of the vinyl chain span across Asia and Latin America, through the affiliates Vinythai in Thailand and Solvay Indupa in Argentina and Brazil.

PVC or polyvinyl chloride, is a thermoplastic material derived from crude petroleum and salt. It is obtained by the polymerization of vinyl chloride (VC). PVC has a wide variety of applications in many sectors: Automotive, Construction, Chemical Industry, Consumer goods, Electrical equipment, Medical devices, Packaging, Water transport and environmental applications. The material’s most outstanding properties include:
• Stability: PVC is used extensively in membranes where resistance to weathering is a priority.
• Versatility: PVC can be rigid or flexible.
• Fire protection: PVC resists ignition thanks to its chlorine content.
• Longevity: PVC products can last up to 100 years in many applications.
• Hygiene: PVC is the material of choice for many medical applications.
• Protection: PVC can be made impervious to liquids, gases and vapors.
• Resource efficiency: Only 43% of PVC's content is derived from petroleum (the rest is salt-based).
• Recyclability: PVC is highly recyclable, thanks to Solvay’s proprietary Vinyloop® technology.

PVC manufacturing complies with the most rigorous regulations regarding safety and the environment, including the "Best Available Technology for PVC production" adopted unanimously by all 25 member countries of the Commission for Protection of the North Sea and the Atlantic (OSPARCOM), applicable since 2003.

For more information, please contact :
Richard THOMMERET
Marketing Manager
SolVin SA
Tél: 32 2 264 22 52