The finalised terms of the joint venture agreement to create INOVYN remain materially unchanged from those announced in June last year.

Solvay received upon closing an upfront cash payment of €150m. In addition to contributing their entire European chlorovinyl business, Solvay has transferred liabilities estimated at €260m into the joint venture.

In three years' time, Solvay will exit INOVYN and receive an additional, performance-based payment targeted to be €280m, with a minimum of €95m. After this point, INEOS will be the sole owner of the business.

Meanwhile, Solvay is buying BASF's 25 per cent stake in its PVC joint venture SolVin. Financial details are not disclosed.

In addition, Solvay and INOVYN have agreed to continue supplying basic chemicals to the BASF site in Antwerp.

Headquartered in London, INOVYN has pro-forma sales of more than €3bn, with 4,300 employees and assets across 18 sites in Belgium, France, Germany, Italy, Norway, Spain, Sweden and the UK. Governance of the joint venture is equally split between the partners.

"Solvay's transformation has reached a key milestone with the creation of INOVYN and we will continue to focus on increasing its growth, returns and resilience," said Jean-Pierre Clamadieu, chief executive of Solvay.

"I want to thank all the teams involved for their commitment in making this happen and I wish the very best to all the employees who begin a new adventure with INOVYN and will ensure its success."

"The INOVYN joint venture combines two businesses with a strong heritage in the chlorovinyls industry, creating a company fit to thrive in an ever changing business environment," said Jim Ratcliffe, chairman of INEOS.

"This is now truly a world-scale business, well-placed to respond rapidly to customer needs in a challenging, competitive market."

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