Solutia to get associated with solar thermal power plant in Egypt

Solutia Inc. is to supply a solar thermal power plant in Egypt with Therminol VP-1, a synthetic heat transfer fluid designed to meet the demanding requirements of high temperature systems.

Flagsol GmbH, a subsidiary of Solar Millennium AG, is designing the solar field and other key solar components for the Egypt power plant. The Therminol VP-1 was purchased by Flagsol.

Heat transfer fluid is an important component with high-quality requirements in Flagsol's solar electric generating system, said Paul Nava, managing director, Flagsol.

"We need a heat transfer fluid with a proven track record for use in solar electric generating systems that can maintain its performance characteristics over years of continuous operation," said Nava.

Prior to this deal, Solutia had announced a global price increase of up to 25 percent for its full line of Therminol heat transfer fluids. This increase will vary by product, packaging, world area and currency of sale, and applies to orders shipped on or after August 7, 2008, for all non-contract customers and where contracts allow.

Solutia recently raised its full-year 2008 adjusted EBITDA guidance to a range of $400 million - $425 million from its previous estimate of $375 million - $400 million. It reported net sales of $1,095 million for the second quarter of 2008, a 20 percent increase over net sales of $911 million for the same period in 2007.