HAlthough a regular at the World Economic Forum in Davos (Switzerland), Ilham Kadri hardly has time to take advantage of the conferences. His days are limited to meeting partners and clients. Thursday, January 18 in the morning, she was in the convention center to talk about her adventure. The boss of the Belgian chemical group Solvay is no longer the boss of Solvay, even if she has not left her company. On December 11, 2023, the group split in two, with the listing of its specialty chemicals, which represents 60% of the company’s activity. The new shares were distributed to existing shareholders.
European chemistry is not in its first reorganization, but this is of interest to French industrial history since Solvay bought, in 2015, what remained of the Rhône-Poulenc chemistry sector, formerly the French champion in the field, renamed Rhodia . It is this piece which constitutes a good part of the activities of the new Syensqo.
Called in 2019 to “wake up the sleeping beauty”in other words improving the growth and profitability of the old Belgian lady, the Franco-Moroccan Ilham Kadri cleaned up the activities and balance sheet of the company which, with the acquisition of Rhodia, had also recovered the mistigri of the Rhône-Poulenc debt left as a farewell gift.
Picky regulations
The debt reduced by 50%, it remained to decide the fate of a company comprising very profitable activities but without growth, such as the manufacture of soda ash from the beginnings of Solvay, and specialty chemicals (from shampoos to fleas and batteries) , booming. Rather than taking advantage of the profits of one to finance the development of the other, the board of directors opted for a split. Slimming treatments are fashionable in this profession, which is unloved by the markets because it is declining in Europe.
This is the drama of chemistry. Germany, a former world champion, had already faced the rise in power of America, China and the Gulf countries. But the end of cheap Russian gas dealt a very heavy blow to the Rhineland’s industrial flagships. To get by, the Germans went to China, and Solvay to America. Now, 41% of Syensqo’s activities are located in the United States, 35% in Asia and less than a quarter in Europe.
“We go where our customers are and where energy is cheap”, recognizes Ilham Kadri. Added to this are more strict regulations on the Old Continent and very strong financial incentives across the Atlantic. Currently, China controls 50% of the world’s chemicals, essential, among other things, for the energy transition. Another story of European industrial decline.