Pharmaceuticals Sector - Solvay

28
Solvay Global Annual Report 2005
The “Electrochemistry
and Fluorinated
Products” cluster
Results of the electrolysis-derived
activities improved in 2005.
Caustic Soda prices remained
buoyant throughout 2005, thanks
to excellent world demand, in particular
in the paper and aluminium
sectors. Price prospects for early
2006 are good.
In Allyls, demand is increasingly
catching up with globally available
supplies. The market, which was
in balance in 2005, will be tight in
2006. As a result, the fi nancial
performance of this activity
improved in 2005. Solvay is also
developing a new and innovative
technology which will enable it to
respond to future market demands.
2005 was a better year for
Fluorinated Products,
with earnings up signifi cantly from
earlier years and ahead of forecasts.
These good results were
attained, despite the rising cost of
the production inputs, thanks
mainly to the very good performance
of refrigeration products.
Activity was also sustained in
Specialties and Inorganic products
for other applications, in certain of
which production capacity limits
have been reached. To meet
the expected growth in these
products the Group decided in
2005 to establish fl uorinated
specialties production units at
Onsan (South Korea).
The fi rst unit is due to come into
service in early 2007 to serve Asia’s
rapidly expanding automobile and
electronics markets. The Onsan
units will use technologies that
have already proven their technical,
safety and environmental capacities
at other Solvay Fluor sites.
The total capital expenditure is of
the order of EUR 50 million.
Prospects for 2006 and beyond
are good, with stronger markets
for traditional products in Europe,
development of new applications
and the forthcoming start-up of
Specialty units in Asia.
Chemicals Sector
The “Oxygen”
cluster: Peroxygens,
Detergents and
Caprolactones
The Hydrogen Peroxide
market has grown well across
the world and more especially in
Europe, Mercosur and South-East
Asia. Rising energy costs have
placed margins under pressure.
After successful testing on a pilot
manufacturing scale at Povoa
(Portugal), Solvay’s new hydrogen
peroxide production process, one
of the most effi cient in the world,
was installed at Deer Park (Texas),
increasing capacity by 50% to
118 kilotonnes, and at Voikkaa
in Finland, doubling capacity
to 85 kilotonnes. These have
confi rmed the feasibility of major
capacity expansions at minimum
investment cost.
A partnership was created with
BASF and Dow in connection with
their project to produce propylene
oxide through a new process using
hydrogen peroxide. Solvay has begun
building in Antwerp (Belgium)
a giant manufacturing unit using
its high-yield technology, which
will produce 230 kilotonnes a year
of hydrogen peroxide on a single
line in 2008.