In 2020, we implemented our G.R.O.W. strategy, announced in November 2019, which sets differentiated mandates for our businesses and allocates resources accordingly. The crisis prompted a renewed focus on customers and in particular on key accounts: we adapted to meet their needs and accelerated strategic cost reduction programs. This resulted in a company-wide focus on cash generation that helped Solvay navigate the crisis effectively. In parallel, we also embarked on a series of minor divestments, having ensured that these businesses had been optimised and were “sale ready”. We also issued a new wide ranging and ambitious sustainability roadmap, Solvay One Planet. Motivated by our Purpose, Solvay leaders came together to ensure that we deliver and emerge from the Covid-19 crisis stronger and ready for the rebound.
Confirming our business strategy
Differentiated business mandates for the 3 segmentsG.Accelerate Growth R.Deliver Resilient cash O.Optimize returns
Enabled by Solvay ONE operating modelW.Solvay ONE to Win
Prioritize investments in high margin MATERIALS businesses with high growth potential, which are also our most sustainable solutions
Unique high-performance polymers and composite technologies
Our ambition is to extend our leadership as the #1 pure play advanced materials business, while leveraging synergies between the polymers and composite technologies to create a leading thermoplastic composites platform. Solvay will prioritize investment and innovation in this segment.
- Realign organization around growth opportunities
- Accelerate innovation with highest-growth customers
- Reallocate resources to thermoplastic composites and battery platforms to accelerate customer wins
- Improve operational efficiencies through simplification, order to cash optimization and digitalization
Maximize cash flow generation from our resilient CHEMICALS businesses where we have a competitive advantage
World-leaders in chemicals that are essential to daily life
Solvay will continue to focus on delivering resilient cash flows and selectively invest in these businesses to become the #1 cash conversion chemicals player.
- Refocus organization on cash and returns
- Drive focused productivity and rationalization programs
- Prioritize Capex to maintenance and invest selectively for compelling cash returns
- Focus R&I on process innovation
Optimize our SOLUTIONS and businesses to unlock value and increase returns
Unique formulation and application expertise
Solvay will optimize these businesses, leverage its leadership positions, drive better returns and unlock value.
- Innovate and invest selectively in specialty niche markets, focusing on three specific areas:
- Consumer goods and crop care, where we have leading positions in vanillin and guar for home & personal care
- Industrial markets such as coatings, where we offer unique solutions for waterborne applications
- Resources, where we are the leaders in improving the yield of metals and minerals for the mining industry
- Achieve turnaround in shale oil & gas and other low-return businesses
- Drive efficiency and address fragmented industrial footprint
Eco-friendly based solutions
Create a winning team and operating model to support a performance-driven culture and win with our customers
Our Solvay One operating model is a completely new way of working that will leverage the many strands and competencies across our enterprise to build a single strong Group with robust performance management.
It will unleash the full potential of the Group by breaking down silos, increasing agility and efficiency, improving how we engage with customers to better serve them, and spreading a performance-driven culture throughout the company. The crisis was a catalyst that accelerated the speed and depth of this transformation.