Adjusted and simpler structures to better prepare the future

The Solvay group today announces a new step in the implementation of its strategy: the Group intends to simplify and increase the efficiency of its organization, with two important structural changes.

Firstly, in the pharmaceuticals area, a new company will be created, incorporated in Luxembourg, which will hold and consolidate the strategic management of all pharmaceutical companies of the Solvay group. This company will itself be held by Solvay SA. Its CEO will be Jürgen Ernst, Director and Solvay Executive Committee member in charge of the Pharmaceuticals Sector. Such Sector remains, as before, controlled by the Solvay Executive Committee and main board.

Throughout the whole process, Solvay will abide by the required social procedures.

Secondly, on June 1, 2004, when Henri Lefèbvre, Member of the Executive Committee and General Manager of the Plastics Sector, will retire, Solvay will unite its Plastics and Processing Sectors into a single one, which will be called Plastics Sector.  The Strategic Business Units (SBU) concerned, active in Specialty Polymers and fuel systems on one hand and in Vinyls and derivates on the other hand, will continue to be lead by their current managers. From June 1, Jacques van Rijckevorsel, Member of the Executive Committee, currently General Manager of the Processing Sector and Solvay Innovation Sponsor, will be responsible for this new Sector. This new, more compact and more interactive structure will, among other, allow the alleviation of a number of horizontal processes common to all activities of the Sector.

Following this reorganization, the Group will consist of three sectors with a comparable size – Pharmaceuticals, Chemicals and Plastics – instead of four today.

Solvay is an international chemicals and pharmaceuticals group with headquarters in Brussels. It employs more than 30,000 people in 50 countries and had consolidated sales of EUR 7.6 billion in 2003. Solvay is listed on the Euronext 100 index of top European companies. Details are available on www.solvay.com.

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Notes to the Editors:

Solvay’s Pharmaceuticals Sector is a research-based organization, whose sales were EUR 1.8 billion in 2003, with 7,500 employees worldwide. Its own R&D spending was EUR 284 million in 2003 – up 7% compared with the previous year.  The company has a prolific R&D pipeline, with around 30 new molecules today at various stages of clinical testing.

Solvay Pharmaceuticals also operates through numerous contracts and alliances with solid partners in the biotechnology sector, as well as for the development and marketing of new products. 

Solvay is ensuring the accelerated growth of its Pharmaceuticals Sector, based on:

• The concentration on four selected therapeutic fields: gastroenterology, gynecology/andrology, cardiology and mental health;
• The acquisition and/or development of new products, and new applications for existing products;
• The acquisition of companies;
• A global presence, with above-market growth, in particular in North America, Central and Eastern Europe, the Middle East and Asia;
• The contributions from newly developed molecules and increased effectiveness of R&D carried out alone or in partnership.

Solvay’s Plastics Sector is rapidly developing its speciality products and acquiring or consolidating leadership and competitive positions in essential products. The combined plastics activities – including processing – had total sales of EUR 3.2 billion in 2003, with 11.300 employees worldwide.

The major strategic changes implemented by the Solvay group have fuelled a rapid growth in Specialties. These research-intensive, high-value added products include high-performance polymers, fluorinated polymers, elastomers and fluids. In terms of sales, Specialty products now outweigh the group’s Vinyls activities, which Solvay has consolidated through alliances and joint ventures with high-quality partners, in order to create scale and increase competitiveness.

The new Plastics Sector also includes Solvay’s 50% share in Inergy Automotive Systems, a global leader in plastic fuel systems whose products are installed in one out every five new cars worldwide. Other plastics processing products comprise pipes and fittings as well as specialties such as films for technical and medical applications.

For further information please contact :

Martial Tardy , Corporate Press Officer
SOLVAY SA Headquarters
Tel: 32 2 509 72 30
Fax: 32 2 509 72 40
E-mail : martial.tardy@solvay.com