“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,” Andrew Noel reports for MarketWatch. “”
“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,” Noel reports. “Representatives for Solvay and Apple declined to comment.”
“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,” Noel reports. “‘This undisclosed contract is good news for Solvay,’ Sanford C. Bernstein analyst Jeremy Redenius said in a note. Such a contract may be worth as much as 100 million euros ($126 million) in annual sales and 60 million euros in earnings for Brussels-based Solvay ‘roughly estimated,’ he said.”
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