January 6, 2016 / 2:07 PM / 2 years ago

Solvay plans sale of polyamide division - paper

BRUSSELS, Jan 6 (Reuters) - Belgian chemicals group Solvay is planning to sell its polyamide business and has given Goldman Sachs a mandate to find a buyer, Belgian business daily De Tijd said on Wednesday.

Polyamides, which can take the form of nylon, are used in textiles, carpets, clothing and car seats. Solvay declined to comment on the article, which cited multiple unidentified sources.

Solvay’s chief executive said in a media interview in 2014 that the company was looking to revamp its polyamides business before considering a possible sale. It completed a cost saving programme in 2014.

The functional polymers division, of which polyamides is by far the largest component, recorded sales in the first nine months of last year of 1.16 billion euros ($1.25 billion), a decline of 10 percent, but core profit (recurring earnings before interest, tax, depreciation and amortisation) rose 24 percent to 119 million euros.

Solvay has steadily shifted from a base chemical and plastics company to one making speciality materials used by the oil and gas sector or in cosmetics and high-performance polymers.

De Tijd said a number of financial or industrial players could be buyers. BASF is one of the world’s largest producers of polyamides.

$1 = 0.9304 euros Reporting by Philip Blenkinsop; Editing by Mark Potter

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