Solvay to reinforce its global leadership in soda ash
(Thomson Reuters ONE) -
Productivity actions and capacity adjustments to yield ?100 mln/yr in cost
savings
Brussels, June 6(th), 2013 --- Solvay announces today that it plans to reinforce
its position as a world leader in soda ash and improve the activity's long-term
profitability by reducing its 2012 European cost base by ?100 million per year
as of 2016. Solvay will focus on a breakthrough competitiveness improvement of
its key synthetic soda ash plants in Europe, while expanding its trona mining-
based operations in North America.
As announced at the end of last year, Solvay has been working on an action plan
to address different regional market dynamics for soda ash, a white mineral
product used in applications like glass and detergents. While demand worldwide
has been growing at global GDP rates, demand in Europe has been suffering from
the economic downturn which has caused structural overcapacity.
"We are determined to strengthen our cost-leadership as the best-in-class
producer of both synthetic and natural soda ash," said Pascal Juéry, President
of Solvay Essential Chemicals. "Our ambitious three-year action plan will enable
the Group to rise up to the challenges and adapt to changes in the competitive
landscape while ensuring our profitability for the long term."
In North America, with limited investments, Solvay is gradually expanding its
production capacity by about 12%, at Green River, Wyoming, where it operates
best-in-class trona-mining industrial assets.
In Europe, Solvay will run an in-depth transformation program at its 6 main soda
ash plants*. The breakthrough improvement in the production of synthetic soda
ash will strengthen its position as the region's cost leader. The Group will
build on its unique know-how and technical capabilities to deliver substantial
savings in all fields, including raw material and energy efficiencies and
maintenance excellence of its plants, combined with an organizational redesign.
More specifically, Solvay plans to address structural overcapacity in the
Mediterranean basin by closing its soda ash unit in Povoa, Portugal, by January
2014. Furthermore, in Rosignano, Italy, the Group will run production capacity
according to market needs on top of making significant productivity
improvements. Solvay will also use more efficiently the full potential of its
world-class synthetic plants in Torrelavega, Spain and in Devnya, Bulgaria to
enhance its competitiveness both in Europe and export markets.
These European restructuring measures will affect about 450 job positions by
2016, including Povoa. Solvay will do its utmost to alleviate the social impact
by prioritising relocations, allowed by the significant number of job openings
at its European sites.
These measures will improve Solvay's soda ash European cost base by ?100 million
per year as of 2016 against 2012 levels and start enhancing profitability as of
2014. The Group will be able to better serve its local and global clients thanks
to an optimal production network in Europe.
*Bernburg and Rheinberg in Germany, Devnya in Bulgaria, Dombasle in France,
Rosignano in Italy and Torrelavega in Spain.
+------------------------------------------------------------------------------+
|As an international chemical group, SOLVAY assists industries in finding and|
|implementing ever more responsible and value-creating solutions. The Group is|
|firmly committed to sustainable development and focused on innovation and|
|operational excellence. Solvay serves diversified markets, generating 90% of|
|its turnover in activities where it is one of the top three worldwide. The|
|group is headquartered in Brussels, employs about 29,000 people in 55 |
|countries and generated 12.4 billion euros in net sales in 2012. Solvay SA|
|SOLB.BE) is listed on NYSE Euronext in Brussels and Paris (Bloomberg: SOLB.BB|
|- Reuters: SOLBt.BR). |
+------------------------------------------------------------------------------+
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You can find here the press release in PDF:
http://hugin.info/133981/R/1707405/565438.pdf
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Source: Solvay S.A. via Thomson Reuters ONE
[HUG#1707405]
Unternehmensinformation / Kurzprofil:
Datum: 06.06.2013 - 08:56 Uhr
Sprache: Deutsch
News-ID 267124
Anzahl Zeichen: 5448
contact information:
Town:
Brussels
Kategorie:
Business News
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