Solvay to re-focus products to lift polyamide chain profits

14 February 2013 14:57  [Source: ICIS news]

BRUSSELS (ICIS)--Solvay aims to lift earnings in its polyamide businesses by €100m ($135m) by 2014 by more closely differentiating between commodity and specialty products, Jean-Pierre Clamadieu said on Thursday.

Changes will be made as part of the Belgium-headquartered group’s on-going portfolio realignment. The company reported 2% full-year 2012 sales growth on Thursday to €12.4bn with “adjusted” recurring earnings before interest, tax, depreciation and amortisation (REBITDA) up 2% also at €2.07bn.

The bulk of its portfolio performed well over the year, capturing growth in emerging markets and in certain product areas, but the cycle-sensitive vinyls and polyamide businesses were under pressure.

The group’s polyamide materials business saw sales fall 6% in 2012 year to €1.70bn with REBITDA down 49% to €99bn. Sales volumes were down 5% year on year with prices down 2%. Solvay reported “lower activity, mostly in the automobile industry and a very tough competitive environment”.

Clamadieu said that Solvay would redefine its business model in the polyamide chain – it makes key polyamide intermediates and engineering polymers.

The aim is to make a clear distinction between commodity and specialty products and the support needed to service them.

($1 = €0.74)


By: Nigel Davis
+44 20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index