Solvay Spins Off Specialty Chemicals Unit

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Solvay last month completed the spin-off of its specialty chemicals business, which has been named Syensqo and supplies a range of lubricant additives and lubricants, among other products.

The split was finalized after owners of 99.53% of Solvay’s stock shares voted Dec. 8 in favor of the change.

Syensqo, which is headquartered in Brussels said it was separated to better position it to grow rapidly. The new company has said it plans to follow a strategy for rapid growth, achieving organic growth of 5% to 7% over the next five years, supplemented by acquisitions.

Solvay’s division, described by the two companies as a demerger, split its two units. Solvay kept its basic chemicals operations, anchored by a soda ash business, which was the smaller of the two units, having more than 9,000 employees and $6 billion in annual revenue. Syensqo has more than 13,000 employees and annual revenue of $9 billion.

The products that Syensqo supplies to the lubricants industry includes perfluoropolyethers, synthetic base stocks used in specialty lubricant applications such as space travel and in greases used; lubricant additives ranging from anti-wear and extreme pressure additives, friction modifiers, seal swell agents, corrosion and rust inhibitors, antioxidants, demulsifiers, low foam emulsifiers; metalworking fluids.

Other products include fragrances, solvents, lithium derivatives used in batteries, and composites and adhesives. Officials have said the company sees opportunities in disruptive trends such as electrification, digitalization and lightweighting.

Former Solvay CEO Ilham Kadri took that position with Syensqo, which now trades on the Euronext stock exchanges in Brussels and Paris.

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