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December 14, 2007

Solvay Indupa will produce bioethanol-based vinyl in Brasil

It will also consider state-of-the-art power generation in Agenetina

Gerald Ondrey

Solvay S.A. (Brussels, Belgium; announces today that the Board of its affiliate Solvay Indupa has approved a further $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 salt-based 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 ton/yr of PVC; 360,000 ton /yr of vinyl chloride monomer (VCM), 235,000 ton/yr of Caustic Soda and 60,000 ton/yr of bio-ethylene.

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

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