Rhodia targets annual EBITDA of more €1bn in three to five years

04 October 2010 10:58  [Source: ICIS news]

SINGAPORE (ICIS)--Rhodia is targeting to strongly boost earnings in the next few years through  re-grouping its business units, the French polyamide and specialty chemicals producer said on Monday.

“We aim at generating a yearly earnings before interest, taxes, depreciation and amortisation (EBITDA) – excluding carbon credits – greater than €1bn, within the next three to five years,” Rhodia chairman and CEO Jean-Pierre Clamadieu said in a statement.

“This represents a growth of around 40%, as compared to 2010 expectations,” he said.

Rhodia reported an EBITDA of €226m in the second quarter of 2010, with a net profit of €43m.

Under its new growth strategy, the company said it would focus on growing promising business areas and markets, as well as innovations in its products and industrial processes, with emphasis on sustainable development.

For external growth, the company would pursue similar strategies as with the recent acquisition of amines and surfactants producer Feixiang Chemicals in China, it said.

Meanwhile, the company has restructured its entire business into 11 global business units (GBUs), from the previous six sub-divisions called "enterprises", the company said.

These GBUs are acetow, aroma performance, coatis, eco services, energy services, engineering plastics, fibras, novecare, polyamide & intermediate, rare earth systems and silica, it said. More than the half of its new global business units are headquartered out of France, with two units in Brazil, two in the US, one in China and one in Germany, Rhodia said.

These new units would be managed by a streamlined executive committe composed of Clamadieu, chief operating officer Gilles Auffret, chief financial officer and executive vice president Pascal Bouchiat and executive vice president Pascal Juery, the company said.

($1 = €0.72)

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By: Nurluqman Suratman

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