VINYTHAI TO BUY SOLVAY THAI UNIT IN EPI PRODUCTION EXPANSION

       Vinythai has earmarked Bt8 billion to expand production of epichlorohydrin (EPI)
       Of tha,t Bt5.75 billion will be used to acquire Solvay Biochemicals (Thailand), a manufacturer of EPI and other chemical and plastic products.
       Solvay, an international chemical and pharmaceutical company headquartered in Brussels, is a shareholder in both companies. It has operations worldwide, with annual revenus of US$9.2 billion (Bt309 billion)
       In a filing with the Stock Exchange of Thailand, Vinythai said its board had approved the acquisition of the unit from Solvay Chemicals and Plastics Holding and the Solvay Group. Vinythathai said its board had approved the acquisiton of the unit from Solvay Chemicals and Plastics Holding and the Solvay Group. Vinythai will use the Solvay's Epicerol process, which can produce 100,000 tonnes of EPI a year.
       The EPI project will be managed by a new subsidiary to be set up after Vinythai finishes acquiring Solvay Biochemicals (Thailand), the company said in the statement.
       Under the capacity-increase plan, the compamy's board approved expenditure of Bt 2.25 billion to increase annual production fo chlorine by 90,000 tonnes and caustic soda by 100,00 tonnes, in order to support the EPI project.
       Vinythai expects a rate of return of 15 per cent on the project. The company sees this investment as a way of redcuing the cyclical effects in the petrochemical industry, especially the PVC business.
       Twenty per cent of the output will be sold domestically and the rest exported. Vinythai will finance the project with cash flow and bank loans.
       Vinythai is now awaiting Board of the project.
       The company's board approved expenditure of Bt2.25 billion to increase annual production of chlorine by 90,000 tonnes and caustic soda by 100,000 tonnes, in order to support the EPI project.