Solvay
2019 Annual Integrated Report

2019
In € million

Acquisitions

Disposals

Total

Subsidiaries

(6)

(31)

(37)

Other

(16)

 

(16)

Total investments

(23)

(31)

(53)

Property, plant and equipment/Intangible assets

(857)

18

(839)

Total

(880)

(13)

(892)

2018
In € million

Acquisitions

Disposals

Total

Subsidiaries

(12)

26

14

Other

(4)

 

(4)

Total investments

(16)

26

10

Property, plant and equipment/Intangible assets

(833)

42

(791)

Total

(849)

69

(781)

In 2019

The acquisition of subsidiaries (€ (6) million) mainly relates to post-acquisition payments of Cytec.

Other acquisitions mainly relate to the investment in Aqua Pharma Group.

The disposal of subsidiaries (€ (31) million) mainly relates to M&A costs for Polyamides divestment for € (16) million, amounts paid for Pharma and Indupa disposals without impact on the 2019 income statement (€ (19) million), net of the reimbursement of loans related to the disposal of the Cross Linkable Compounds business for € 7 million.

The acquisition of property, plant and equipment and intangible assets (€ (857) million) relates to various projects:

  • Composite Materials: new manufacturing line of high performance particles for pre-impregnated carbon fiber in Willow Island (United States);
  • Corporate: investment in Material Science Application Center in Brussels (Belgium);
  • Specialty Polymers: new production unit dedicated to Polyethersulfone (PESU) in Panoli (India);
  • Specialty Polymers: Polyvinylidene Fluoride (PVDF) capacity increase in Tavaux (France);
  • Specialty Polymers: Diofan PVDC latex capacity increase in Tavaux (France);
  • Technology Solutions: doubling of production capacity of hindered amine light stabilizers (HALS) in Willow Island (United States).

In 2018

The acquisition of subsidiaries (€ (12) million) related to post-acquisition payments of Cytec.

The disposal of subsidiaries (€ 26 million) was mainly related to the phosphorus derivative business for € 54 million, the Soda Ash business in Egypt for € 10 million, M&A costs for Polyamides divestment for € (20) million. The balance is composed of amounts paid or received for prior years disposals without impact on the 2018 consolidated income statement (deferred payment for purchase of BASF shares in Solvin for € (22) million and Cross Linkable Compound for € 4 million).

The acquisition of property, plant and equipment and intangible assets (€ (833) million) related to various projects:

  • Corporate: investment in Material Science Application Center in Brussels (Belgium);
  • Soda Ash & Derivatives: refurbishment of a cogeneration unit in Bernburg (Germany);
  • Special Chem: new eH2O2 plant in Rosignano (Italy) and in Zhengiang (China);
  • Specialty Polymers: new production unit dedicated to Polyethersulfone (PESU) in Panoli (India);
  • Specialty Polymers: Polyvinylidene Fluoride (PVDF) capacity increase in Tavaux (France);
  • Technology Solutions: doubling of production capacity of hindered amine light stabilizers (HALS) in Willow Island (United States).

In 2018 the cash in from disposal of property, plant and equipment related to sale of real estate (€ 27 million), mainly following restructuring initiatives or changes in portfolio and cash in from disposal of intangible assets related to sale of customer lists (€ 15 million).