(AOF) – Saint-Gobain has finalized the sale of its glass processing activity Saint-Gobain Glassolutions Grand Ouest to a group of private investors led by former managers of the group. This activity, which operates in glass transformation in the North-West of France and in glass installation throughout France, generated a turnover of around 60 million euros in 2021 and employs 420 people. This operation is part of the continuation of the strategy to optimize the group’s profile, in line with the objectives of the “Grow & Impact” plan.
It allows Saint-Gobain in France to focus its investments on innovative solutions for sustainable construction, such as the low-carbon glazing offer, which has just been commercially launched, or the recycling of glazing in a closed loop.
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Key points
– World leader in housing materials, created in 1665;
– Turnover of €44.2 billion divided into 5 branches, Northern Europe for 34%, Southern Europe & Africa (including France) for 32%, Americas for 13% and High performance for 15%;
– Activity 54% intended for renovation and infrastructure (52%), ahead of new residential (22%) or industrial (10%), mobility (7%) and other industries;
– Business model based on a complete portfolio of brands and a solution-based approach: productivity gains for construction professionals, well-being for the end user and tailor-made performance & innovation for the industrial customer;
– Split capital (8.3% for employees), Pierre-André de Chalendar, chairing the 14-member board of directors, Benoît Bazin as general manager;
– Solid balance sheet with net debt maintained at €7.3 billion (35% of equity) and €2.9 billion in free cash flow.
Challenges
– “Grow & Impact” strategic plan launched in October 2021: growth superior to the markets / offer of integrated, differentiated solutions for the decarbonization of construction / industrial investments around €1.5 billion;
– Innovation strategy with 3 principles, anticipation of standards, integration of digital in production and customer journeys and sustainable growth: structured by 20 platforms shared by industrial and construction customer businesses: smart materials, robotization, lightening of materials, reduction carbon footprint in manufacturing processes… / customer experience with 90% of sales covered by PIM, “digital pricing” accelerating sales / internally, Open program in the form of “Digital journey”, Datala, partnerships with start-ups led by NOVA… / externally, partnerships with research centres, participation in EAGLE, WOOL2LOOP or Optivind… projects, and co-development with customers;
– Environmental strategy integrated into the product offer, 72% of the portfolio contributing to the reduction of CO2 emissions, aiming for total neutrality by 2050 and with 2030 objectives: 33% reduction in CO2 emissions vs 2017 via an envelope of €1 billion in industrial and R&D investments / circular economy avoiding the extraction of raw materials / research into solid oxygen fuel cells;
– After €2 billion in acquisitions and as many disposals in 2021, emergence of a group positioned in high-growth sectors, in particular construction chemicals;
– Integration of Chryso and Rockwool India and completion of the takeover bid on GPC Applied Technologies.
Challenges
– Cyclical character of the activity, 4/5
th
sales being made in the construction sector;
– Impact of inflation of raw materials and energy more than offset by the ability to have the increase in selling prices accepted (10.3% at the 4
th
quarter of 2021);
– Unknown on the total cost of repairs to the Genfell tower in London, to which the local subsidiary had provided coverings and insulating foam;
– After record financial performance in 2021, 2022 objective of sales growth exceeding that of the market, industrial investments of €1.8 billion and a further increase in operating income;
– 2021 dividend of €1.63 and buyback of shares for €400 million.
CSR permeates the sector
Unicem created a CSR label in 2018, which met with some success: in concrete, nearly 700 sites, i.e. half of the activity in France, have committed to the approach, as well as 400 sites constituting almost 30% of the turnover of French quarries. This approach encompasses several initiatives such as reducing the carbon footprint of products or improving relations with suppliers. Great efforts have been made in terms of recycling, which now reaches 70% in the sector, compared to about 50% ten years ago, and while it was almost non-existent thirty years ago. However, Unicem would like the public authorities to strengthen their support for this CSR approach through the use of labeled companies.