The PVC joint venture being set up together by Belgian chemicals group Solvay and Ineos will be called Inovyn. It is also expected to be launched by the end of the year.

“Thanks to this agreement we now have a unique opportunity to create a world- class competitive player with high-quality assets and substantial synergies, better able to withstand the challenging environment in Europe,” said Jean-Pierre Clamadieu, CEO of Solvay.

Last year, Solvay and privately held Ineos agreed to form a joint venture from which the Belgian group would eventually exit, but the deal has hit snags with the European Commission directing Ineos to sell its plants in Belgium, France, the Netherlands, Germany and the UK in order for the deal to proceed.

Now, Solvay has revised the terms of its deal with Ineos to reflect the required disposals as well as a tougher market environment. Solvay will look to exit the business after three years, and may receive a targeted EUR250 million payment on top of an upfront payment of EUR175 million when the merger is completed. The final cash proceeds will depend on the joint venture’s performance and the minimum exit payment is set at EUR75 million.

Solvay CEO Clamadieu said the group’s exit from the PVC business is “another key step in the transformation of Solvay's business profile.” Solvay plans to shift from lower-margin bulk plastics to speciality polymers and chemicals, such as for the oil and gas sector, and consumer chemicals for skin and hair care products.

Inovyn will be headquartered in London and would have 2013 proforma sales of more than EUR3 billion, with 14 sites in eight countries.