On the occasion of its 150th anniversary, Solvay invites you to discover its history through twelve thematic pieces.
(Thomson Reuters ONE) -
This month, discover the paths taken by Solvay and Rhodia that led these two
companies to their combined destiny
as united Group.
Chronicle # 9 - Integrating a group with its own long history: Rhodia
It is not possible to understand the new Solvay without turning one's attention
to the roots of Rhodia. These are those of France's powerful Rhône-Poulenc
group. Like Solvay, a child of the second industrial revolution, Rhône-Poulenc
is part of the history of chemistry and European industry. Over a 150 year
period, the two groups have many times crossed paths, partnered and contracted
with each other before eventually coming together to form one company.
The Rhone Valley, the cradle of a global brand
Advertisement for Rhodia vanillin, 1923
In the middle of the 19th century, the young chemist Prosper Monnet founded in
Lyon one of the first French companies producing the aniline, used in dyeing
(1857). In 1895, the company became a public limited company under the new name
of Société Chimique des Usines du Rhône (SCUR). Among SCUR's banner products, we
find vanillin (1894), "Rodo"synthetic perfumes (1896), Aspirine du Rhône (1902),
cellulose acetate (1902), and as soon as 1917, Rhodoïd, a cellulose-based
plastic. In 1902, SCUR launched the Rhodia trademark to designate the vanilla
flavor along with some products derived from acetate. It is also under this
brand that SCUR developed, from 1919 onwards, its first foreign subsidiaries in
Brazil and the United States.
First partnerships with Solvay
In 1922, SCUR joined forces with the Comptoir des Textiles Artificiels,
controlled by the Gillet family to found Rhodiaceta, specializing in the
production of artificial silk. It so happened that among the friends of the
Gillet family was Emmanuel Janssen, managing partner of Solvay. This proximity
created a long-lasting financial and technical collaboration. Both groups
engaged in joint investments in France, especially in the mechanical production
of glass, chemicals and synthetic fibers. On leaving the senior management of
Solvay, Emmanuel Janssen took with him most of these shareholdings which he
integrated into other companies, including Union Chimique Belge (today's UCB).
Edmond Gillet, Comptoir des Textiles Artificiels
Emmanuel Janssen, Solvay & Cie.
Rise of a giant: Rhône-Poulenc
In 1928, SCUR merged with the Établissements Poulenc Frères based in Ivry-sur-
Seine (Paris), to give rise to the Rhône-Poulenc group. Very active in
pharmaceuticals and fibers, the group diversified after World War II to become a
major producer of synthetic fibers (nylon, polyester), penicillin, and
silicones. During the 1960s and 1970s, a series of mergers and acquisitions
propelled Rhône-Poulenc to the forefront of the French chemical industry. With a
large number of divisions and businesses, Rhône-Poulenc reordered its structure,
in particular by divesting of its petrochemicals and mass polymers activities,
in so doing providing a great opportunity for Solvay, which was then expanding
its plastics transformation business. The Belgian group purchased the
Établissements Maréchal, four factories specialized in PVC calendering and
coating.
Solvay-Maréchal stand, 1970
Converging dynamics
The two oil shocks of 1973 and 1981 transformed the entire chemical industry.
Subject to the same global uncertainties, Rhône-Poulenc and Solvay applied, each
in its own way, not dissimilar strategies: structuring into divisions or
sectors, de-emphasizing petrochemicals, growth in less cyclical and higher
value-added activities, focus on leadership positions.
In the early 1980s, the two groups' trajectories again came close. Rhône-Poulenc
was nationalized in 1982 and its CEO Jean Gandois resigned. Shaken by its first
financial losses, Solvay saw him as a potential candidate for CEO. Finally, this
did not happen, with Jacques Solvay largely confirmed in his position.
The wedding of the century
The 1990s were marked by the privatization of Rhône-Poulenc and the big split
between its pharmaceutical business and its chemical, plastics and fibers
activities. The first continued under the name of Rhône-Poulenc until its merger
with Hoechst to form Aventis. The latter were united under the banner of Rhodia,
which became independent in 1998. The challenge facing the new company was to
reduce the debt inherited from the separation from Rhône-Poulenc, while
strengthening its presence in specialty chemicals. That objective had been
attained at the very time that Solvay was seeking to reinvest the proceeds from
the sale of its pharmaceutical business in an ambitious industrial project.
Rhodia joined Solvay in 2011. The new group launched into a high-speed
transformation process. Never was any change carried out at Solvay at such an
intense pace! Today, scarcely two years after the operation, the new Solvay
affirms itself as one of the major players in the global chemical industry.
Next story: the legacy of Ernest Solvay - A tale around a name
Curious about our 150th anniversary?
Have a look at www.solvay150.com
You can find here the chronicle in PDF:
http://hugin.info/133981/R/1731113/578707.pdf
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Source: Solvay S.A. via Thomson Reuters ONE
[HUG#1731113]
Unternehmensinformation / Kurzprofil:
Datum: 24.09.2013 - 16:00 Uhr
Sprache: Deutsch
News-ID 299815
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