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Solvay Indupa, the Argentine subsidiary of Belgium-based group Solvay, obtained authorization from Brazil's securities regulator CVM to issue level 2 depository receipts (BDRs), the company announced in a statement.
As a result, Solvay Indupa can start trading on the São Paulo stock exchange Bovespa.
The company is carrying out an expansion plan at its Santo André plant in São Paulo state, which is expected to be concluded in the second half of 2010. The project will increase capacity of caustic soda by 65,000t/y to 235,000t/y, of vinyl chloride monomer by 50,000t/y to 360,000t/y and of PVC by 55,000t/y to 330,000t/y.
The investment will be financed partly with the BDR issue, as well as the company's own resources and a loan from Brazil's national development bank BNDES.
In addition, Solvay Indupa is going to build a 60,000t/y ethylene plant in Brazil using sugarcane-based biofuel as feedstock, which will be fed into the firm's PVC production chain.
The company will also up PVC output by 40,000t/y at its Bahía Blanca site in Buenos Aires province.