Solvay Announces New Mid-Term Objectives
Solvay SA, Brussels, Belgium, at its Capital Markets Day in London last week updated its strategic transformation, reaffirms its financial guidance for 2016 and unveils medium-term value objectives that will accelerate its drive to create sustainable and long-term value as a multi-specialty chemical company.
"Solvay's profound transformation over the past three years demonstrates we are well on track in making the Group more global, resilient, sustainable and innovative. Our client base has changed very significantly in past years and we are becoming more and more a strategic partner with mission critical solutions which are key parts of our customer leading programs," said Jean-Pierre Clamadieu, Chief Executive Officer of Solvay. "The transformation towards a multi-specialty chemical company will continue. Our new mid-term targets encompass sustainability as well as financial delivery, to create value that stands the test of time."
Solvay has further bolstered its position in Advanced Materials through several contract awards, high profile qualifications and capacity expansions to serve industry's leading companies. Its recognized technology leadership and application expertise allow Solvay to develop sustainable solutions with strategic customers such as Airbus, Boeing and Safran, to name but a few. Solvay has shown its commitment to sustainable solutions with a recent agreement to only use renewable energy by 2018 for all products it supplies to Apple.
The Group's new objectives for the three-years to 2018, encompass both sustainability and financial targets. The sustainability targets will reinforce long lasting market leadership positions and include commitments to reduce greenhouse gas intensity by a fifth and to raise the proportion of sustainable solutions to 40% of Group sales.
These commitments will help to enhance financial value delivery from 2016 to 2018. Objectives, at constant scope and foreign exchange rates, include:
- annual mid-to-high single-digit EBITDA growth. This objective reflects a continued focus on excellence programmes, with operational excellence alone delivering a further EUR 450 million. Solvay is also committed to maintaining its investment grade, which is another lever to sustain the additional value that will be created;
- a cumulative free cash flow generation exceeding EUR 2.4 billion;
- an increase of cash flow return on investment by 50-100 basis points.
Would you like to subscribe to our Newsletters on plastics technology and profit from the latest information?
Looking for a new challenge? Check out our jobs market!
Patents encourage innovation: Stay on the ball with the latest innovations in the plastics industry in our patents section.