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Ilham Kadri visiting Solvay's historical site in Bernburg Germany

Solvay announces its G.R.O.W. strategy to drive growth, cash and returns

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  • Businesses realigned around distinct mandates
  • New operating model – Solvay ONE – to leverage operational efficiency within the Group
  • Provides new mid-term financial targets through 2024


Brussels, November 7, 2019 --- Solvay announces its G.R.O.W. strategy to drive growth, cash and returns.

Our G.R.O.W. strategy is the result of a comprehensive strategic review of our entire portfolio,” said Ilham Kadri, CEO of Solvay. “We will unleash Solvay’s full potential through a disciplined and differentiated allocation of resources across the Group, based on distinct business mandates and enabled by our new operating model, Solvay ONE. We will focus on growth, cash and returns, and will prioritize investment in the highest return opportunities. We will also create a more effective way to serve and innovate with our customers, as we increasingly deliver sustainable solutions that meet the needs of a more ESG-focused world. Therefore, we are well positioned to drive superior value creation for shareholders, customers and all other stakeholders.


Solvay has realigned its businesses into three segments, MATERIALS, CHEMICALS and SOLUTIONS, each with a distinct mandate. The restated figures for the segments are available on Solvay’s website 

  • MATERIALS to accelerate Growth: Materials comprises Specialty Polymers and Composite Materials, which are high-margin businesses with leading market positions that are addressing the sustainability needs of the future. Solvay will prioritize investment and innovation in this segment. We will extend our leadership position as the #1 pure play advanced materials business, leveraging synergy between Specialty Polymers and Composite Materials to create a leading thermoplastics platform.
  • CHEMICALS to deliver Resilient cash: Solvay is a global leader in Soda Ash, Peroxides and Silica, and its Coatis and Rusvinyl businesses are regional leaders. Solvay will continue to focus on delivering resilient cash flows and selectively invest in these businesses to become the #1 cash conversion chemical player.
  • SOLUTIONS to Optimize returns: The Solutions segment includes Novecare, Technology Solutions, Aroma and Special Chem, which operate in diverse, niche markets. Solvay will optimize these businesses, leverage its leadership positions, drive better returns and unlock value.
  • Solvay ONE to Win: The new operating model will unleash the full potential of the Group through resource prioritization, tailored approach to customers, and a repeatable cost and cash playbook.

Solvay will deliver €300 million to €350 million of cost savings on a run rate basis by 2024. Effective management of pension liabilities, debt and working capital will generate approximately €500 million in additional cash flow cumulatively over the period.

Reflecting its new strategy, Solvay has set mid-term targets for the Group:

  • Underlying EBITDA to grow organically mid-single digit on average from 2020-2024
  • Free cash flow conversion to exceed 30 percent by 2024, compared to approximately 22 percent in 2019
  • ROCE to exceed 11 percent by 2024, compared to approximately 8 percent in 2019, equivalent to €300 million more annual pre-tax profits

Third Quarter Earnings Release and Webcast

Separately today, Solvay released its results for the first nine months and third quarter of 2019. The
company’s earnings release and infographic can be found on the company’s website at

An analyst call will be held at 14:00 to discuss the third quarter 2019 results as well as the new strategic framework announced this morning. Please see: HTTPS://WWW.SOLVAY.COM/EN/INVESTORS/FINANCIAL-CALENDAR-EVENTS-PRESENTATIONS/INVESTOR-DAYS/2019-STRATEGYREVIEW.
A slide presentation will be included with the audio portion of the webcast and will be posted online 30 minutes before the call starts.


Safe Harbor

This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this press release is subject to risks and uncertainties relating to a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations, changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals, regulatory approval processes, all-in scenario of R&I projects and other unusual items. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update or revise any forward-looking statements.


Solvay is an advanced materials and specialty chemicals company, committed to developing chemistry that addresses
key societal challenges. Solvay innovates and partners with customers worldwide in many diverse end-markets. Its
products are used in planes, cars, batteries, smart and medical devices, as well as in mineral and oil and gas extraction,
enhancing efficiency and sustainability. Its lightweighting materials promote cleaner mobility, its formulations optimize
the use of resources, and its performance chemicals improve air and water quality. Solvay is headquartered in Brussels
with around 24,500 employees in 61 countries. Net sales were €10.3 billion in 2018, with 90% from activities where
Solvay ranks among the world’s top 3 leaders, resulting in an EBITDA margin of 22%. Solvay SA (SOLB.BE) is listed on
Euronext Brussels and Paris Bloomberg: SOLB.BB - Reuters: SOLB.BR), and in the United States its shares (SOLVY) are
traded through a level-1 ADR program. (Figures take into account the planned divestment of Polyamides).

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