Solvay announces plan to split into two independent public companies
The proposed new firms will be SpecialtyCo, which would include plastics and composites, and EssentialCo.
Belgian multinational chemical company Solvay SA has announced plans to split itself into two independent publicly traded companies.
In a March 15 news release, Solvay officials said the two new businesses would be EssentialCo, which will comprise mono-technology businesses including soda ash, peroxides, silica and coatis, which are reported as the company’s chemicals segment, as well as the Special Chem business; and SpecialtyCo, which will comprise Solvay’s currently reported materials segment, including specialty polymers, composites, and the majority of its solutions segment, including Novecare, Technology Solutions, Aroma Performance, and Oil and Gas.
As an independent company, Solvay officials said, EssentialCo would be further expand and consolidate, including through growth in natural soda ash and sodium bicarbonate, pursuing growth in the Asia-Pacific region. and further extending its footprint in the peroxide market.
SpecialtyCo, meanwhile, will be comprised of a materials segment and a consumer and resources segment. Solvay’s plastics and composites businesses will be included in SpecialtyCo.
Solvay said the proposed split “is designed to sharpen strategic focus, optimize growth opportunities and build the foundation for the future.”
“The plan to separate into two leading companies represents a pivotal moment in our journey to transform and simplify Solvay,” CEO Ilham Kadri said in the news release. “Notwithstanding the challenges of the current global environment, we are confident that pursuing this plan would enable us to create compelling value for shareholders over the long term.”
The separation is expected to be completed in the second half of 2023.