Solvay CEO Calls on Biden to Provide Clarity Amid Pandemic and Economic Uncertainty

Strategic Insights -

As the US recovers from a tumultuous transition and grapples with the worst pandemic of modern times, Ilham Kadri, the CEO of chemicals multinational Solvay, is urging President Joe Biden to provide businesses with clarity on tax reform, regulation, and the US relationship with China. Kadri believes that predictability is essential for businesses to start planning, and the transition period has been "not smooth." She added that she expects there will be new complexities for Solvay to navigate, but is confident in the company's ability to adapt.

Key Takeaways:

  • Solvay CEO Ilham Kadri is calling on President Joe Biden to provide clarity on tax reform, regulation, and the US relationship with China to help spur economic recovery.
  • Kadri believes that predictability is essential for businesses to start planning, and the transition period has been "not smooth."
  • Solvay has generated a record €801m in free cash during the pandemic and recession, thanks to rapid action on costs and working capital.
  • Kadri has launched the sale of six businesses, part of the company's strategy to reposition itself in three areas: materials, chemicals, and sustainability-focused solutions.
  • Solvay's target is to generate 65% of revenues from "sustainable solutions" by 2030, and the company is investing in sectors deemed sustainable, such as battery recycling and the hydrogen economy.
  • The company is facing controversy over industrial waste and alleged contamination to water supplies in New Jersey, but insists that all allegations are "without merit."
  • Kadri concedes that chemical companies have to clean up their act, but insists that the industry is also part of the solution to sustainability challenges.

Statistics:

  • €801m: The amount of free cash generated by Solvay during the first nine months of the pandemic and recession.
  • 158 years: The age of Solvay, which generates about a third of its €10bn annual sales in the Americas.
  • 50 M&A deals: The number of mergers and acquisitions made by Solvay in the past decade, prior to Kadri's arrival.
  • 65%: The target percentage of revenues to be generated from "sustainable solutions" by 2030.
  • 2030: The target year for Solvay to achieve its sustainable goals, including generating 65% of revenues from sustainable solutions.

Sources:

  • Financial Times
  • Berenberg investment bank
  • Degroof Petercam merchant bank
  • Solvay annual report