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 COMPLETES BUY OUT OF
MEXICAN JOINT VENTURE PARTNER
SOLE OWNERSHIP OF PUEBLA PLANT WILL HELP MEET INCREASING GLOBAL DEMAND FOR
SOLUTIA PVB INTERLAYERS USED IN AUTOMOTIVE AND ARCHITECTURAL APPLICATIONS
ST. LOUIS AND PUEBLA, MEXICO - MARCH 2, 2006 - Solutia Inc. (OTCBB: SOLUQ),
the world leader in the production and sale of polyvinyl butyral (PVB)
interlayers, today announced it has completed its purchase of Vitro Plan,
S.A. de C.V.'s 51 percent stake in Vitro Plan's joint venture with Solutia,
known as Quimica M, S.A. de C.V. As a result, Solutia is now the sole owner
of Quimica M. Additionally, Solutia and certain affiliates of Vitro Plan
have entered into agreements under which Solutia will supply those Vitro
Plan affiliates with their requirements for Saflex(R) and Vanceva(R) PVB
interlayer products. Both the purchase and supply agreements became
effective March 1.
With its buyout of Vitro Plan, Solutia is the sole owner and
operator of the Quimica M PVB interlayer 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 reflects our commitment to meet the growing
global demand for our Saflex and Vanceva PVB interlayers. The Puebla plant
will now make PVB interlayers not only for Vitro Plan and other valued
Mexican customers, but also for our customers around the world," said Luc De
Temmerman, president of Solutia's Performance Products Division. "The Puebla
plant produces world-class products from a very competitive cost position.
Therefore, we have plans to invest in new capacity as well as additional
capabilities, which will enable us to begin manufacturing new products that
are on the leading edge of technological development."
Jeffry N. Quinn, chairman, president and CEO, added, "We are
relying on our Laminated Glazing Interlayers (LGI) business to generate
significant profitable revenue growth for Solutia, both now and well into
the future. This acquisition, in combination with the new PVB interlayer
plant we are building in Suzhou, China, demonstrates our ongoing commitment
to realizing this potential."
The Puebla plant operates state-of-the-art PVB interlayer
manufacturing lines using the same Solutia technology used at other Solutia
production sites. In addition to the Puebla plant, Solutia's LGI business
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. The company's newest PVB interlayer plant, being constructed
in Suzhou, China, is scheduled to begin production in mid 2007.
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
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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 Luc De Temmerman, president of
Solutia's Performance Products Division, 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 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
3/2/06
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