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)
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