Exhibit 99.1
[SOLUTIA logo] News
SOLUTIA INC.
575 Maryville Centre Drive
St. Louis, Missouri 63141
P.O. Box 66760
St. Louis, Missouri 63166-6760
FOR IMMEDIATE RELEASE
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MEDIA: Dan Jenkins (314) 674-8552
INVESTORS: Tim Spihlman (314) 674-5206
SOLUTIA TO BUY OUT MEXICAN JOINT VENTURE PARTNER
TRANSACTION WILL HELP MEET INCREASING GLOBAL DEMAND FOR SOLUTIA PVB INTERLAYERS
USED IN AUTOMOTIVE AND ARCHITECTURAL APPLICATIONS
ST. LOUIS AND PUEBLA, MEXICO - NOVEMBER 28, 2005 - Solutia Inc. (OTCBB:
SOLUQ), the world leader in the production and sale of polyvinyl butyral
(PVB) interlayers, today announced it has reached a definitive agreement
with Vitro Plan, S.A. de C.V. (NYSE: VTO; BMV: VITROA), to purchase Vitro
Plan's 51 percent stake in its joint venture with Solutia, known as Quimica
M, S.A. de C.V. As a result, Solutia will become the sole owner of Quimica
M. Additionally, Solutia and certain affiliates of Vitro Plan will be
entering into agreements under which Solutia will supply those Vitro
affiliates with 100 percent of their requirements for Saflex(R) and
Vanceva(R) PVB interlayer products. This purchase and the related
transactions are subject to bankruptcy court approval, the approval of the
parties' respective boards of directors, and the Mexican Competition
Commission.
The Quimica M joint venture produces PVB interlayers at a plant in
Puebla, Mexico. These interlayers are used by major glass producers such as
Vitro to make laminated glass for use in automobiles and buildings.
"This acquisition is another important step forward in our
reorganization," said Jeffry N. Quinn, president and CEO, Solutia Inc. "One
of the basic tenets of our reorganization strategy is to improve our asset
portfolio. This acquisition, in addition to the recently announced
construction of our Laminated Glazing Interlayers (LGI) plant in Suzhou,
China, significantly enhances the strategic position of our LGI business."
Mitch Pulwer, general manager of Solutia's LGI business, said,
"Solutia has a long history working with Vitro Plan and affiliates to grow
its glass business. We look forward to continuing and strengthening this
important relationship."
Pulwer added, "This transaction is an important component of the
strategy to optimize our worldwide production of PVB interlayer for the
benefit of our customers. The Puebla plant offers a proven supply of the
world's premier PVB interlayers. As a result, we will have greater
flexibility in meeting the needs of customers and in scheduling our
worldwide manufacturing operations as efficiently as possible. And, we will
continue to invest throughout the world as both technology and capacity
needs arise."
Commissioned in 1995, the Puebla plant operates state-of-the-art
PVB interlayer manufacturing lines using the same Solutia technology used at
other Solutia production sites. The plant is ideally situated to allow
Solutia to directly supply PVB interlayers to the growing Mexican market, as
well as to customers in other world areas.
"The LGI business plays a critical role in our growth strategy for
the Performance Products Division," said Luc De Temmerman, president of
Solutia's Performance Products Division. "As a global division, we are
continuously evaluating opportunities to further develop our presence in
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areas with significant growth potential, such as Mexico and China."
This agreement comes less than three months after Solutia announced
that it is beginning construction of a new Saflex and Vanceva PVB interlayer
plant in Suzhou, China. Solutia's LGI business presently manufactures PVB
interlayers at Ghent, Belgium; Sao Jose Dos Campos, Brazil; Springfield,
Mass., USA; and Trenton, Mich., USA. It also has a PVB finishing center,
distribution center and regional customer service center in Singapore.
In addition to being the world's largest producer and seller of PVB
interlayers, Solutia is the global leader in PVB innovation, quality and
reliability. When laminated between layers of glass, PVB interlayers greatly
enhance the performance characteristics of glass, providing benefits such as
security, solar protection, sound attenuation, safety and style. Laminated
glass made with Saflex PVB is used in applications for automobiles and
buildings. In addition to Saflex, Solutia manufactures Vanceva
high-performance interlayers, providing customers the world's most
innovative portfolio of laminated glass interlayers.
For more information about Solutia's LGI products, visit:
http://www.solutiaautomotive.com, http://www.saflex.com and
http://www.vanceva.com.
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NOTES TO EDITOR:
o Saflex and Vanceva are registered trademarks of Solutia Inc.
o Interviews are available with Mitch Pulwer, general manager,
Laminated Glazing Interlayers, Solutia Inc., by contacting
Dan Jenkins at (314) 674-8552.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements, which
can be identified by the use of words such as "believes," "expects," "may,"
"will," "intends," "plans," "estimates" or "anticipates," or other
comparable terminology, or by discussions of strategy, plans or intentions.
These statements are based on management's current expectations and
assumptions about the industries in which Solutia operates. Forward-looking
statements are not
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guarantees of future performance and are subject to significant risks and
uncertainties that may cause actual results or achievements to be materially
different from the future results or achievements expressed or implied by
the forward-looking statements. These risks and uncertainties include, but
are not limited to, those described in Solutia's most recent Annual Report
on Form 10-K, under "Cautionary Statement About Forward-Looking Statements,"
Solutia's quarterly reports on Form 10-Q, and in filings with the U.S.
Bankruptcy Court in connection with the Chapter 11 case of Solutia Inc. and
14 of its U.S. subsidiaries. These reports and filings can be accessed
through the "Reorganization" and "Investors" sections of Solutia's website
at www.solutia.com. Solutia disclaims any intent or obligation to update or
revise any forward-looking statements in response to new information,
unforeseen events, changed circumstances or any other occurrence.
CORPORATE PROFILE
Solutia (http://www.Solutia.com) uses world-class skills in applied
chemistry to create value-added solutions for customers, whose products
improve the lives of consumers every day. Solutia is a world leader in
performance films for laminated safety glass and after-market applications;
process development and scale-up services for pharmaceutical fine chemicals;
specialties such as water treatment chemicals, heat transfer fluids and
aviation hydraulic fluid and an integrated family of nylon products
including high-performance polymers and fibers.
Solutia ... Solutions for a Better Life.
SOURCE: SOLUTIA INC.
ST. LOUIS AND PUEBLA, MEXICO
11/28/05
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