Solvay to optimize its global soda ash industrial network
Brussels, December 18(th), 2012 at 7.30 am - Solvay, world leader in Soda Ash,
today announced its decision to proceed with the optimization of its global
industrial footprint. The Group's strategic intent is to reinforce its
positioning by adjusting its production capacities in line with differentiated
market dynamics and cost-competitiveness considerations. This will allow Solvay
to improve the profitability and the cash generation potential of its Soda Ash
business.
Demand for Soda Ash in emerging markets, North America, Eastern Europe and
Middle East remains satisfactory while Western and Southern Europe are
confronted with challenging conditions of long-lasting poor demand and
overcapacity. "These contrasting macroeconomic patterns call for a regional
adjustment. As a leading market player, we are determined to adjust our business
and align our supply to the demand in the market, namely in the South of Europe
and the Mediterranean area", explains Pascal Juery, the appointed President of
Solvay's newly created Essential Chemicals Global Business Unit.
Solvay, present in North America (Green River, Wyoming) with the most
competitive trona-mining industrial assets, is to expand its existing production
capacity by c.15% through manufacturing excellence actions requiring a limited
amount of investments. This will allow Solvay to follow the market growth in
areas such as South America.
In the European market, Solvay will continue to reinforce the competitiveness of
its synthetic-based Soda Ash plants by leveraging operational excellence, energy
efficiency and maintenance effectiveness. The Group will put a special focus on
its world-class synthetic Soda Ash production sites and the development of its
leading position in Sodium Bicarbonate. Solvay's competitive footprint in the
region is ideally located to serve these markets.
More specifically in Southern Europe and the Mediterranean basin, Solvay is to
address both structural overcapacity due to reduced demand and increasing
competitive pressure from the new trona-based competition in the area. Solvay is
currently examining solutions to adapt its manufacturing footprint to the
expected market demand and will implement an appropriate action plan by mid-
2013.
Soda Ash is a white free-flowing granular product mainly used in glass,
detergents and environmental applications. Solvay operates nine Soda Ash
production plants in 8 countries (Bulgaria, Egypt, Germany, France, Italy,
Portugal, Spain and United States).
SOLVAY is an international chemical Group committed to sustainable development
with a clear focus on innovation and operational excellence. It is realizing
over 90% of its sales in markets where it is among the top 3 global leaders.
Solvay offers a broad range of products that contribute to improving the quality
of life and the performance of its customers in markets such as consumer goods,
construction, automotive, energy, water and environment, and electronics. The
Group is headquartered in Brussels, employs about 31,000 people in 55 countries
and generated EUR 12.7 billion in net sales in 2011 (pro forma). Solvay SA
(SOLB.BE) is listed on NYSE Euronext in Brussels and Paris (Bloomberg: SOLB.BB -
Reuters: SOLBt.BR).
For further details, please contact:
Lamia Narcisse Erik De Leye Maria Alcon-Hidalgo Patrick Verelst
Media Relations Media Relations Investor Relations Investor Relations
+33 1 53 56 59 62 +32 2 264 1530 +32 2 264 1984 +32 2 264 1540
You can find here the press release in PDF:
http://hugin.info/133981/R/1665651/540458.pdf
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Source: Solvay S.A. via Thomson Reuters ONE
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