Solvay Said to Win IPhone 6 Contract to Supply Plastic

By Andrew Noel

Solvay SA (SOLB) won a contract to supply Apple Inc. (AAPL) with a high-performance plastic for its iPhone 6 handsets, said two people with knowledge of the situation.
The Belgian chemical maker is supplying polyether ether ketone polymer, known as PEEK, for internal parts of the latest iPhone models, according to the people, who asked not to be identified because the agreement is not public. Representatives for Solvay and Apple declined to comment.
The iPhone 6 and 6 Plus became available in September, selling more than 10 million units during their opening weekend, a record. The Apple contract is a boost for Solvay Chief Executive Officer Jean-Pierre Clamadieu’s strategy to focus on
higher-margin consumer offerings amid a plan to exit cheaper polyvinyl chloride plastics through a joint venture.
Solvay entered the market for PEEK, used in products ranging from artificial limbs to airplane parts, almost a decade ago by buying Gharda Chemicals of India.
The company joins Britain’s Victrex Plc (VCT), the market leader by volume, in benefitting from increased demand for PEEK plastics in consumer electronics as products become thinner and lighter and are increasingly at risk of overheating because they process more data. Germany’s Evonik Industries AG is another major manufacturer of the plastic.
The U.K. company, based in Thornton Cleveleys, said Oct. 9 that sales to the consumer-electronics industry in the six months through September were better than expected. It also supplies one ton of PEEK per Boeing 787 Dreamliner as the plastic replaces heavier metal parts, and is in talks with COMAC Shanghai Aircraft Manufacturing Co. as the Chinese planemaker prepares for commercial production.
Solvay shares were unchanged at 110.05 euros as of 9:08 a.m. in Brussels.