+1 - Solvay

Capital expenditures
and Research and Development
The Group is actively pursuing its strategy of
sustainable and profitable growth through projects
in its three Sectors of activity. These are capital
expenditures targeted to expand its activities and its
industrial platforms in certain emerging markets such
as Asia, Mercosur and Russia. Examples include
the EPICEROL ® process for epichlorohydrin and
hydrogen peroxide in Thailand, specialty polymers in
India and China and vinyls in Russia and Mercosur. It
also encompasses projects for improving our energy
efficiency. Simultaneously, the Group is reinforcing its
exploration of new promising areas for the medium
term, especially in membranes for fuel cells
(joint venture with SolviCore), organic products for
electronics, lighting and photovoltaic cells (Plextronics),
and nanotechnologies.
Research and Development (R&D) costs in 2007
reached EUR 556 million. 75% of these were incurred
in the Pharmaceuticals sector, where R&D efforts
amounted to EUR 415 million, or 16% of sales. The
R&D budget for 2008 is EUR 578 million, of which
75% is earmarked for the Pharmaceuticals Sector.
Capital expenditures in 2007 amounted to
EUR 777 million compared to an initial budget of
EUR 905 million. For 2008, the capital expenditure
budget is an ambitious EUR 1 091 million. These
expenditures permit the Group to implement a series of
projects in the framework of its strategy for sustainable
and profitable growth and a dynamic management
of its portfolio of activities. However, the Group is
carefully applying its policy of selectivity, which aims to
adapt, to the extent possible, the timing of its capital
expenditures to the evolution of its performance and
the macroeconomic context.
Investments & acquisitions by
the Group in 2007 = EUR 777 million
334
55
73
315
Group R&D in 2007 =
EUR 556 million
37
87
17
415
Management Report
Pharmaceuticals = 73
Chemicals = 315
Plastics = 334
Corporate & Business Support = 55
Pharmaceuticals = 415
Chemicals = 37
Plastics = 87
Corporate & Business Support = 17
Management
Report
Solvay Global Annual Report 2007
15