Vinythai Plc announced today that its Board of Directors has approved the acquisition of a 100% shareholding in Solvay Biochemical Thailand (SBT) company which will be used to undertake a world class Epichlorohydrin Project that will apply Solvay’s Epicerol® process for production. The total value of the acquisition is 360 MTHB and the new project will be built at Vinythai’s existing plant.
 
Total projected investment is approximately 8,000 MTHB, comprising the investment in the Epichlorohydrin plant and expansion of Hydrogen Chloride and Caustic Soda capacity necessary to ensure sufficient supplies of raw materials to the Epichlorohydrin plant. The main feedstock for the Epichlorohydrin production will be glycerin derived from the production of biofuels and the production will be based on the Epicerol® process an environmentally sustainable technology developed by Solvay.
 
The investment is subject to approvals from relevant governmental authorities and shareholders.
 
The new plant is scheduled to be operational in the first quarter of 2012, with an annual production capacity of 100,000 metric tons. This will immediately launch Vinythai as an important producer of Epichlorohydrin which is experiencing  rapidly growing demand in the Asia-Pacific region.
 
Epichlorohydrin is an essential feedstock for the production of epoxy resins, increasingly used in such applications as corrosion protection coatings as well as the electronics, automotive, aerospace and power-generating windmill industries.
 
Epicerol® is an innovative process developed by Solvay, based on the transformation of glycerin, a renewable by-product of biodiesel production using palm oil and other vegetable oils.
 
Vinythai believes that the new project based on environmentally sustainable technology will have a competitive advantage that will  enable the company to become a  key player in the Asia-Pacific region Epichlorohydrin business. It will also diversify Vinythai’s product range  and add significant value to the Company for its shareholders.
 
Vinythai is a Vinyl and Chlor-alkali producer listed on the Stock Exchange of Thailand. Its major shareholders are Solvay Chemicals and Plastics Holding B.V. (49.99%), PTT Chemical Public Company (24.98%), and the Charoen Pokphand Group (11.87%).
 
For further information please contact :
Mrs. Varaiporn Piphitpattanaprapt   
Vice President Finance and Accounting
Vinythai Public Company Limited 
Tel. :  0 2240 2425  0 2229 9131
Fax  :  0 2240 1375  0 2240 1383
E-mail: varaiporn.piphitpattanaprapt@solvay.com
Web-site :  www.vinythai.co.th

Mr. Sompot  Cheeranorawanich
Assistant Vice President Corporate Affairs and Communications
Vinythai Public Company Limited 
Tel. :   0 2240 2425  0 2229 9171
Fax  :  0 2240 1375  0 2240 1383 
E-mail  :  sompot.cheeranorawanich@solvay.com
Web-site :  www.vinythai.co.th