Solvay Spins Off Specialty Business to Syensqo

Solvay announced at the end of last week that it has successfully completed the spin off of its Specialty business to Syensqo. The partial demerger became effective on Dec. 9, 2023, and the two companies started trading as two separate entities — Solvay and Syensqo — on Euronext Brussels and Paris on Dec. 11.

Syensqo began trading at a valuation of more than $10 billion when the markets opened on Dec. 11.

Syensqo comprises two business segments: Materials, serving mainly the automotive and aerospace sectors, and Consumer & Resources, focused on manufacturing solutions for a range of applications including home, personal care, and agriculture.

Its portfolio addresses environmental and social challenges through electrification, lightweighting, advanced connectivity, resource efficiency, improving quality of life, and sustainable sourcing, the company said. It defined its four major growth platforms as battery materials, green hydrogen, thermoplastic composites, and renewable materials and biotechnology.

Solvay’s portfolio encompasses mono technologies such as soda ash, bicarbonate, silica, hydrogen peroxide, fluorine and rare earths, phenol, and solvents, the company said in the announcement. It operates in 40 countries and employs more than 9,000 people.

Related:Solvay Unveils New Name for Plastics Business

Last month, Solvay announced plans to build a battery-grade polyvinylidene fluoride (PVDF) facility in Augusta, GA, in a joint venture with chemicals company Orbia. At the time, Solvay said the partnership would secure the supply by Orbia of needed materials for Solvay to manufacture its suspension-grade PVDF production, which is used as a lithium-ion binder and separator coating in electric vehicle batteries. Solvay, on the other hand, will bring its process technology and global market know-how to this venture. “In combination, Solvay’s Solef PVDF innovations and Orbia’s raw material assets and production expertise will enable delivery of PVDF that enables electric vehicles to go farther on each charge, extends battery life, and improves battery safety,” said the news release.

The PVDF plant, said to be the largest North American production facility for electric vehicles, now falls under the Syensqo umbrella. The United States is Syensqo’s largest market, representing nearly $2.7 billion in sales and nearly 5,000 employees across 34 industrial sites and three research and innovation centers.

“This [spin off] reflects our dedication to creating sustained value for stakeholders and ensuring Solvay's ongoing success,” commented Pierre Gurdjian, chairman of the Sovay board. “Collaborating with experienced and highly qualified directors, we're positioned to closely work with the executive leadership team, establishing Solvay as a leader in essential chemicals. The prevailing megatrends present compelling opportunities for enhancing value. Leveraging our leadership and insight, we will confidently guide Solvay into the future.”

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