36 This new world-scale production unit should be operational by the end of 2009 in response to growing demand in Asia for epichlorohydrin. Other expansion projects are currently being examined in different parts of the world. EPICEROL ® presents additional advantages over the traditional epichlorohydrin production process: • significantly lower volumes of by-products and waste; • use of natural glycerine as a raw material in place of propylene, which is derived from oil. Glycerine is a by-product of the production of biodiesel, obtained from processing vegetable or animal oil. EPICEROL ® expresses the Group’s commitment to “Green Chemistry” by using a renewable raw material in place of a fossil resource. In 2007 we redirected our Fluorinated Products, with a view to reducing our refrigerants activities and concentrating more on high-added-value fluorinated chemicals. This reflects the fact is that the market for basic refrigerants is affected by several unfavourable factors, including an influx of low-priced competitive products from Asia, the strong euro and energy prices. Four European sites, Hannover, Bad Wimpfen, Frankfurt (Germany) and Porto Marghera (Italy) have set in train a major restructuring programme aimed at adjusting our product offering and cost structure to the market situation. A fifth plant at Tarragona (Spain) will be closed down. At the same time, numerous highadded-value fluorinated chemicals specialties are developing, like for example the inorganic fluorides used for aluminium brazing (NOCOLOK ® ); sulphur hexafluoride for insulating medium- and highvoltage switching equipment; SOLKANE ® 365 mfc blowing agent for polyurethane insulating materials; and iodine pentafluoride, used in particular for producing weatherproof garments. Continuing the expansion of its portfolio of sophisticated products, <strong>Solvay</strong> has just launched an innovative fluorinated specialty that can extend the lives of lithium-ion batteries. It has also developed personalized solutions for complex industrial cleaning applications. The other strategic development thrust is geographic and consists of developing sales in the promising Asian and US markets. Combining these two strategic thrusts, in 2007 we successfully launched our new fluorinated products unit at Onsan (South Korea), specifically dedicated to fluorinated specialty chemicals and strengthening our direct access to the Asian markets for these products. The “Oxygen” cluster: Hydrogen Peroxide, Detergents and Caprolactones Sales up by 7% from 2006. The Hydrogen Peroxide market confirmed its continuing growth in 2007, as in the three earlier years, with strong demand in all regions, including Europe. Construction of the first 230 kt/year (100% concentration) hydrogen peroxide unit at Antwerp (Belgium), in the framework of the partnership with BASF and Dow, using the high-yield process developed by <strong>Solvay</strong>, is progressing on schedule. Commercial production of propylene oxide by our partners, using a new hydrogen peroxidebased process, is scheduled to start in 2008. The very strong demand for propylene oxide will absorb the greater part of the hydrogen peroxide production from this plant, which as a result will be unable to serve the other traditional markets for this product. Another major step in developing this new market is the newly concluded agreement between Dow and <strong>Solvay</strong> to create a joint venture to build a second 330 kt/year (100% concentration) megaplant in Thailand. The advent of these giant hydrogen peroxide plants marks a new stage in the production technology for this product, in which we are confirming our world leadership position, with reduced capital investment, operating economies of scale and optimized use of energy and raw materials. The specialties area remains as dynamic as ever. In 2007, the new peracetic acid (PAA) production plant was started up at Suzhou (China). Fully operational now, this plant delivers advanced disinfectant solutions with no significant environmental impact. There is heavy demand in the Chinese market for <strong>Solvay</strong>’s PAA range, marketed under the PROXITANE ® brand name. This market has grown strongly in recent years, in particular for disinfectant applications in the food and drinks packaging industry and for on-site sterilization of food and pharmaceuticals production equipment. In the detergents market, Persalts continued to evolve in a very aggressively competitive environment. The conversion of soda perborate into soda percarbonate is continuing in response to customer demand. The Group’s entire Caprolactones activity, based at Warrington (UK), is being sold to Sweden’s Perstorp group. <strong>Solvay</strong> Global Annual Report 2007
Chemicals Sector Chemicals 37 Riccardo Gazzari In charge of Chemical Plant General Services New Calcium Chloride production plant: control operations for automatic valve opening. Photograph taken on January 28, 2008 at the <strong>Solvay</strong> Chimica site, Rosignano, Italy. <strong>Solvay</strong> Global Annual Report 2007
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