Vinythai to buy the operating assets of APEX Petrochemical Co., Ltd

14 September 2007

Vinythai Public Company Limited (VNT), in which Belgium''s Solvay SA owns a 49.99-per cent stake, is set to acquire plastics manufacturer APEX Petrochemical Company Limited (APEX). Vinythai expects to complete the transaction within the third quarter of 2007, subject to regulatory and shareholder approval.

APEX manufactures polyvinyl chloride (PVC) resins and chlor-alkali in Thailand. Its production facility located at Tambol Map Ta Phut, Amphur Muang, in Thailand''s Rayong Province has a manufacturing capacity of 120,000 metric tones per annum (mtpa), would expand Vinythai''s existing production of 210,000 mtpa to 330,000 mtpa.

The acquisition will be financed through borrowing from an unnamed local financial institution.

According to Vinythai, this acquisition is in keeping with its plans to have a fully integrated PVC production capacity of 400,000 mtpa, to serve the growing demand from the local market and will be well positioned to meet the growing demand for PVC in the competitive South East Asian market.

With the already announced increase production capacity by 70,000 tpa, the fully integrated capacity will become 400,000 mtpa by the mid 2008.

The new production capacity will be aligned with Vinythai''s production process, which is based on the principle of best available technology, keeping in this way the high plant efficiency and the high standard of environment protection. This will reinforce Vinythai''s position as a key player in the regional vinyl industry and add significant value for the Company and its shareholders.