HOrIzON - Solvay

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STRATEGY >>> VISIOnS AnD PERSPECTIVES revenue is generated in Asia Pacific, the vast majority still being earned in Europe. “Within the next five years, however, Asia should increase to about 30%, and I would hope that 25 years from now, we’d have a really balanced geographical spread worldwide.” The Group is working hard to increase its brand awareness in Asia, in order to attract the most qualified scientists, researchers and engineers, as well as academic and commercial partners. “My objective is to eventually hire my Korean successor,” says Wilkes. “I feel very strongly that our Asian businesses should be run by Asian executives. But I also know that it’s not that easy. We are competing against a lot of large, multinational chemical companies, and so we need to work doubly hard to ensure that Solvay is rec- ANDReW cUMMING, General Manager of the RBU essential chemicals Asia. 10 - Solvay live - september 2011 ognized as an attractive employer.” BANGKOK. In this year’s third quarter the world’s largest hydrogen peroxide plant in Thailand will be completed. ESSENTIAL ChEmICALS IN ChINA Solvay is a world industry leader in the main essential chemicals, and Asia is now the largest and fastest growing market for these products. A potent combination, and the mission for the newly formed Regional Business Unit (RBU) Essential Chemicals Asia is to seize this opportunity to grow within the region. “We have had a relatively small manufacturing presence in the region for many years, mainly in India, Thailand and Australia,” explains Andrew Cumming, General Manager of the RBU Essential Chemicals Asia. “However, China is now the largest market in the world for Essential Chemicals and continues to grow quickly, so we are specifically targeting to develop Solvay’s position within the industry here. We have decided to base the RBU in Shanghai to reinforce our commitment to this and to allow us to be close to our customers and partners. The coming months will see a big jump forward in the RBU’s business in Asia as several very exciting projects come on-stream” he adds. In this year’s third quarter the world’s largest hydrogen peroxide plant in Thailand will be completed. Primarily designed to support cHINA. Solvay is a leader in essential chemicals and China is now the largest market in the world for those products. Dow’s HPPO project, this plant will also allow Solvay Peroxythai to double its present capacity to supply the regional markets. This year will also see the first two manufacturing joint ventures for Essential Chemicals start in China: a hydrogen peroxide plant in Shandong in partnership with Huatai Chemicals, and the recently concluded joint venture in Tianjin for the production of soda ash and sodium bicarbonate. The large new 100,000 metric tons epichlorohydrin plant of Asian Biochemicals (Thailand) will start early next year, and work continues on a second project for epichlorohydrin in China. “We are also sponsoring research at Chinese universities in the field of manufacturing, and developing local talent, for instance by appointing the first Asian managing director in Peroxythai. These projects,
SeOUL. In Korea, Solvay has successfully grown its presence through strategic alliances and innovation for the past 20 years. with the other new projects continuing to be added to the pipeline, are part of a comprehensive investment program by Solvay and are a clear demonstration of our commitment to grow in Asia,” concludes Andrew Cumming. GREAT VALUE LIES IN WhAT WE KNOW When speaking of innovation in Asia, inevitably the subject of Intellectual Property rears its head. “Five years ago, IP was a very serious concern in China, and often you’d be warned about how easily things get copied in emerging markets”, resumes Ziad Haddad. “Today, most people from outside China still view it as a low-cost production country, with basic technologies. However, China is now focusing on developing very high-end competitive technologies that will be able to compete against technologies from the West in the coming five to ten years in areas such as water and renewable energies. So I believe that if you play your cards right and do a good job protecting your own technologies, as China becomes more developed, the government will start ensuring that IP is protected because they’ll want to project an image as being a leader in new technologies,” Haddad concludes. ● A.F. : ÉRIc DeRUeLLe, Innovation champion for Asia, describes how Solvay is laying the foundation for open innovation and lucrative partnerships across the region. innovaTion ANd ALLIANCES Which of the societal megatrends do you think are most driving Asia’s markets? Éric Deruelle: growth in asia is being driven by urbanization, construction and population growth, resulting in increased demand for products such as electronics and solar panels. so while solvay has, in fact, been developing in asia for the past 20 years, the pace has accelerated considerably in order to offer solutions for these needs. What infrastructure is being put in place to position Solvay as a key innovator in the region? É. D.: in early 2011, solvay opened an r&D center in onsan, south Korea where we also have an industrial plant. and a new research, Development and technology (rDt) center will soon open in vadodara, india, which will eventually support upwards of 250 researchers. in seoul, Korea, solvay recently signed an agreement with eWHa Womans University for the construction of an rDt Center that will focus on electronics, lithium-ion batteries and photovoltaic cells. solvay will also locate the headquarters of the special Chemicals gbU on the eWHa university campus. and solvay is encouraging open innovation in asia: in Korea, for instance, universities, r&D Centers, smes and large groups were invited to learn about solvay and apply for a strategic alliance. in addition, with the help of its scientists, solvay is trying to develop relationships with local universities and research centers, mainly in india, China, thailand and Japan. What success have you had thus far in collaborating with local partners in Asia? É. D.: in Korea, solvay has successfully grown its presence through strategic alliances and innovation for the past 20 years. iriDos, for example, is a small joint venture with nepes. it developed a blue pigment with enhanced properties for lCD screens: a successful formula as there now is a plant in Korea producing this pigment. Do your RDT centers across Asia also have specific focuses? É. D.: Countries tend to develop certain areas of expertise and attract a certain talent base, and solvay’s rDt Centers are leveraging on them. our rDt Center in india will, for instance, focus on green chemistry, because india is rich in renewable resources and has attracted many researchers in that field. it will also focus on polymers thanks to specialty polymers’ historical presence there. the rDt Center in Korea will focus on li-ion batteries, photovoltaic products and electronics, which are the high-growth markets of the region. and the rDt Center in China will look at ways to adapt solvay products and solutions to meet local needs, in order to expand growth potential. again, in everything we do, it all boils down to the customer: customer intimacy is king. ● “Solvay has considerably accelerated the pace of its development in Asia.” Solvay live - SEPTEMBER 2011 - 11
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HOrIzON - Solvay

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