+1 - Solvay

• Product Development Risk is Solvay’s exposure to failure to develop new products and technologies or scale
up a process. Solvay’s operating results depend, among other factors, on the innovation and development of
commercially viable new products and production technologies. Because of the lengthy development process,
technological challenges and intense competition, Solvay cannot ensure that the products it develops will become
market-ready or achieve commercial success. If Solvay is unsuccessful in developing new products and
production processes in the future, its competitive position and operating results will be harmed.
Mitigation efforts
Solvay Solvay devotes substantial resources to Research and Development. Solvay continuously improves
the competitiveness of its essential products over the long term, through technological improvements and
innovation. Innovation is the cornerstone of the Group’s strategy, and Solvay considers that managing
the challenges related to product development is more about opportunity than risk for the company.
Management of R&D by programs and projects fully in line with Solvay’s strategy enhances R&D performance and
reduces the risk of failure.
Management by projects, with a conceptual and operational roadmap for moving a new product project from idea
to launch, also ensures that resources are used in an optimal way.
Participation in venture capital funds allows Solvay to remain engaged at the forefront of emerging businesses
such as alternative renewable energies and organic electronics.
Solvay launched a dynamic innovation program at corporate level nine years ago, covering its main fields
of activity, including R&D.
7. Risk to People
Risk to People is the exposure of employees, contractors and the public to adverse effects from Solvay’s activities
and products, for example from plant processes or from transportation of hazardous chemicals. A major accident
can injure people or lead to the temporary closing of a plant and ultimately expose Solvay to significant liabilities.
Mitigation efforts
Solvay considers the safety and health of people key aspects in the management of its activities. The Group has
consistently developed and implemented stringent safety programs. Related policies and risk control programs apply
to all production units and other facilities, including to contractors and newly acquired plants.
The risk of hazardous chemicals transportation is reduced by mapping and minimizing transport routes and by
the operation of integrated production units, which do not require the transportation of intermediate goods.
Solvay follows recommendations of associations like Eurochlor and programs like Responsible Care ® .
8. Environmental Risk
Environmental Risk is Solvay’s exposure stemming from the accidental release of a chemical substance following
a plant equipment failure, a transport accident or production problems resulting in exceeding permitted emission levels.
Solvay operates manufacturing plants in many regions. Like most industrial equipment, this may create
environmental risks through the accidental release of chemicals into the environment. Around 30 sites are covered
by regulations dealing with major risks. Like most other industrial companies, Solvay has to manage and remediate
historical soil contamination at some of its sites.
Financial
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Solvay Global Annual Report 2007