SOLVAY has announced that it is reviewing plans to split into two independently-traded companies, which it says will allow each to focus on their distinctive business models.
It will be split into two companies temporarily known as EssentialCo, which will focus on chemicals, and SpecialtyCo, which will focus on materials.
EssentialCo would comprise of Solvay’s chemical segment, which includes the speciality chemicals business along with soda ash, peroxides, and silica businesses. Solvay said that EssentialCo will focus on high asset utilisation and maximising on returns.
SpecialtyCo would comprise of the materials segment, which includes speciality polymers and composites. It will also have the solutions segment, which includes oil and gas, technology solutions, and aroma performance. It will focus more on innovation that supports a more sustainable world, with accelerated growth potential.
Solvay said that the separation will allow each company to focus on its own business models, market, and stakeholder priorities. They will also have separate net zero goals, with SpecialtyCo expected to reach carbon neutrality by 2040, while EssentialCo aims for 2050, partially due to its energy-intensive soda ash business.
Ilham Kadri, CEO of Solvay, said: “The plan to split into two leading companies represents a pivotal moment in our journey to transform and simplify Solvay.
“Our talented and dedicated employees have worked hard to transform Solvay, and their efforts have enabled us to take this important next step towards the creation of two strong companies. We expect to create opportunities in each company for our employees to thrive and grow, and we are confident that both companies will maintain the same levels of customer focus and commitment to value creation."
The separation is expected to be completed in the second half of 2023.
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