Solvay to Optimize Its Global Soda Ash Industrial Network

Solvay today announced its decision to proceed with the optimization of its global industrial Soda Ash footprint. The Group's strategic intent is to reinforce its positioning by adjusting its production capacities in line with differentiated market dynamics and cost-competitiveness considerations. This will allow Solvay to improve the profitability and the cash generation potential of its Soda Ash business.

Demand for Soda Ash in emerging markets, North America, Eastern Europe and Middle East remains satisfactory while Western and Southern Europe are confronted with challenging conditions of long-lasting poor demand and overcapacity.

Solvay, present in North America (Green River, Wyoming) with the most competitive trona-mining industrial assets, is to expand its existing production capacity by c.15% through manufacturing excellence actions requiring a limited amount of investments. This will allow Solvay to follow the market growth in areas such as South America.

The Group will put a special focus on its Soda Ash production sites and the development of its leading position in Sodium Bicarbonate.

More specifically in Southern Europe and the Mediterranean basin, Solvay is to address both structural overcapacity due to reduced demand and increasing competitive pressure from the new trona-based competition in the area. Solvay is currently examining solutions to adapt its manufacturing footprint to the expected market demand and will implement an appropriate action plan by mid-2013.

Soda Ash is a white free-flowing granular product mainly used in glass, detergents and environmental applications. Solvay operates nine Soda Ash production plants in 8 countries