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Solvay Launch Its Growth Strategy

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

“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


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


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