By the OGJ Online Staff
HOUSTON, Jan. 11 -- Former executives of Australian Vinyls Corp. have agreed to acquire the polyvinyl chloride resin and specialty products interests of Orica Ltd., Melbourne, and PolyOneCorp., Cleveland, Ohio, in their joint venture AVC.
The operations being sold to a team led by Murray Winstanley, a former managing director of AVC, reported a loss in 2001, said PolyOne.
Financial terms were not disclosed.
PolyOne expects an impairment writedown of PolyOne's investment in AVC will be recognized in the fourth quarter of 2001.
PolyOne has a 37.4% interest in AVC; the remaining portion is held by Orica Ltd., which is also divesting its resin and specialty products interest.
AVC also said it would close its Altona, Victoria, Australia, PVC resin plant, because the facility's scale and age made it uncompetitive in the market. The plant is not part of the sale to the Winstanley group.
PolyOne (37.4%) and Orica (62.6%) will retain ownership of AVC's PVC compounding assets, which include three production facilities in Greater Melbourne, Victoria. This joint venture will operate as Welvic Australia Pty. Ltd.
