Solvay's strategy is "to achieve better geographical balance" through stronger growth rate in the Americas and the Asia-Pacific region. Solvay wants to grow in those regions on markets that fit with its current portfolio and for which it can obtain international cost-competitive advantage, which is also a key element of Solvay's strategy.
Pipes and Fittings :
PIPELIFE GROUP ANNOUNCES THE ACQUISITION OF 100% OF WIENERBERGER'S PIPES ACTIVITIES IN CHINA
SOLVAY (Belgium) and WIENERBERGER (Austria) have signed a purchase agreement towards the acquisition by the Pipelife Group (50/50 joint venture between the two companies) of 100% of Wienerberger's shareholding participation it holds in China.
Under the terms of this agreement, Pipelife Group will operate 5 companies in China :
(In the region of Chengdu)
Chuanlu Plastic sales and service;
Chuanwie PVC pipes manufacturing company;
Chuanxi fittings manufacturing company;
(near Guangzhou - Nansha)
the pipes company of Wienerberger Nansha;
(in Shanghai)
the pipes company of Shanghai Wienerberger.
The Pipelife Group will benefit from Wienerberger's 5 years experience in China and the excellent reputation of Chuanlu Plastic in pipes and fittings for soil applications and water supply, both in terms of product quality and product range. Pipelife also expects that Chinese plastic pipe market will strongly grow in the coming years, in particular in the building industry and civil engineering works.
The purchase agreement will enter in force as soon as final approval by the relevant Chinese authorities will be received, which is expected to happen before the end of 1999.
PIPELIFE is one of the main three European producers of plastics pipes and fittings. PIPELIFE operates with 3,200 employees, 31 plants in Europe in 23 countries, with turnover exceeding EUR 550 M.
For the Solvay Group, this move is an important step in developing its pipes and fittings business outside Europe.
Wienerberger is a leading building material producer, based in Vienna/Austria, with 216 plants in 26 countries in and outside of Europe and a turnover of EUR 1,143 million. The corporate strategy focuses clearly on bricks and pipes.
Barium and Strontium carbonates:
SOLVAY TAKES CONTROL OF DAEHAN SPECIALTY CHEMICALS (DSC) IN SOUTH KOREA
The Solvay Group is increasing its participation in DAEHAN SPECIALTY CHEMICALS to a majority of 60 %. Samsung Display Devices will keep the remaining 40 %. Daehan Specialty Chemicals is an important manufacturer of barium and strontium carbonates in South Korea with production facility in Onsan (South East coast) since 1987. Solvay will be directly in charge of the marketing policy of Daehan Specialty Chemicals.
Day to day management of the company will continue to be assured by the present Korean management which maintained remarkable performances despite the Asian crisis.
This move and the recent agreement with Xinji Ltd. in China will strengthen Solvay's position in Asia in the field of barium and strontium carbonates. Daehan Specialty Chemicals offers good prospects in the coming years thanks to the improvement of its competitiveness and the future growth prospects for barium and strontium carbonates in their traditional markets, as well as in the area of flat-screen displays which opens new opportunities.
The Solvay Group is worldwide the main producer in the barium and strontium carbonates business. Its 1998 sales of barium and strontium carbonates and related products amounted to approximately EUR 170 million (USD 198 million).
The SAMSUNG Group has grown out to be Korea's largest multinational company. With over 267,000 employees in more than 65 countries, 1997 sales of all Samsung affiliates represented USD 96.1 billion. Its major products are in the fields of electronics, heavy industry, chemicals and financial services. Samsung affiliates offer world-class products and services under the Samsung brand name.
Other developments in Asia in 1999
In Pharmaceuticals, in May 1999, the Solvay Group launched LUVOX® tablets in Japan, introducing the first SSRI antidepressant on the local market. It is marketed through a collaboration with two major local partners, employing a sales force of about 1,700 medical representatives. Sales growth has been good.
In PVC compounds, in February 1999, the Group also announced its plan to increase its presence still further in China with a majority (60%) holding in a projected joint venture with Chinese company Shanghai Chlor Alkali Chemical.
Solvay is an international chemical and pharmaceutical group headquartered in Brussels (Belgium). It employs about 33,000 people in 46 countries. In 1998, its consolidated sales amounted to EUR 7.5 billion (USD 8.7 billion), generated by its four sectors of activity : Chemicals, Plastics, Processing and Pharmaceuticals.
