Edited from “strategy”, company website
The “change strategy” that was first launched in 1998 focused on two major elements: strengthening the company’s leadership in all of its activities and accelerating the development of the pharmaceuticals sector and its specialties products. These objectives are said to have been met and the company will now strategically focus in 2008 on the following three areas: growth in pharmaceuticals, chemicals and selected plastic areas; innovation; and increasing its presence in Asia, the Americas and Eastern Europe.
“The strategy we have chosen is clear, such a strategy is possible only within a long-term vision”, says chairman, Christian Jourquin.
Its strategy of leadership and faster development in pharmaceuticals and specialities, and of geographic deployment in high-growth zones, is expected to be of a ‘winning combination’. In addition, the company is benefiting from the results of a group-wide innovation initiative, which is bringing new product, processes and applications, as well as improvements at all levels across the company.
Solvay further says that it is aiming for more than €1.1bn ($1.54bn) in additional sales by 2012 from new projects in chemicals and plastics as well as pharmaceuticals growth. The company is planning to grow in emerging markets such as Egypt, the Mercosur countries, Russia and Thailand as well as reduce cyclicality in the business.
It further expects 20% of its pharmaceutical sales to come from emerging markets.
Due to decreasing availability of fossil energy, leading to higher prices and volatility, a technology push and regulatory pull is making renewable energies increasingly attractive.
“Energy has become a crucial competitive differentiator, and fundamental changes are to be expected in the whole industry”, says Jourquin.
The risk of supply shortages and less predictable profitability has led Solvay to invest in bioethanol projects in Brazil, as well as to focus on vertical integration in chemicals and plastics.
Pharmaceuticals strategy for 2010
Chemicals strategy for 2010
Plastics strategy for 2010 (for the two activity clusters, specialties and vinyls)
Please also see Solvay may reinvest in Asia after pharma sale – PwC on ICIS news.
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Financial highlights: Solvay, year ended 31 December
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Solvay operates in pharmaceuticals, chemicals and plastics. In 1861, Ernest Solvay developed a revolutionary ammonia-soda process for producing sodium carbonate. The Solvay group was founded in 1863 to exploit this process.
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