Belgian chemical producer Solvay has launched a new operating model called Solvay ONE to pursue its G.R.O.W forward strategy. CEO Ilham Kadri said the goal is to unleash the group’s full potential through a “disciplined and differentiated allocation of resources, a tailored approach to customers and a repeatable cost and cash playbook.”

Toward this goal, Solvay has realigned its businesses into three segments, Materials, Chemicals and Solutions, each with a distinct mandate.

In Materials, which comprises specialty polymers and composite materials – high-margin businesses with leading market positions – the group will prioritize investment and innovation, thereby leveraging synergy between the two units to create a leading thermoplastics platform.

For Chemicals, the Brussels group is depending on its position as a global leader in soda ash, peroxides and silica and the regional leadership of its Coatis and Rusvinyl businesses to deliver “resilient cash flows.” In future, it said it will invest “selectively” in these businesses.

Solvay’s new Solutions segment includes Novecare, Technology Solutions, Aroma and Special Chem, which operate in diverse niche markets. The strategy here is to optimize these businesses and leverage leadership positions while driving better returns and unlocking value.

On the financial side, the chemical producer has set a target to deliver €300-350 million in 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, Kadri said.

Along the path to implementing its new strategy, Solvay has set midterm group targets, according to which underlying EBITDA should grow organically in the mid-single digit range from 2020-2024.