On September 24, 2024, Solvay announced a new initiative to engage in consultations with its social partners regarding the potential cessation of production for TFA (trifluoroacetic acid) and its fluorinated derivatives at the company's Salindres facility in France. This strategic decision is part of Solvay’s ongoing efforts to address the financial challenges faced by the plant, which has experienced persistent underperformance due to unfavorable market conditions. The company anticipates that these adverse conditions are unlikely to improve in the foreseeable future.

The proposed discontinuation of TFA production would lead to the elimination of approximately 68 positions at the Salindres site, with the layoffs expected to occur between early 2025 and October 2025. This move reflects Solvay’s commitment to adapt to changing market dynamics while striving to ensure the sustainability of its operations. By consulting with social partners, the company aims to navigate the transition responsibly and support those affected by this decision.

In connection with this project, Solvay plans to recognize provisions of around €50 million in its financial results for the third quarter of 2024. Most of the associated cash outflow is expected to take place starting in 2025, indicating a significant financial impact as the company restructures its operations. Despite this challenging development, Solvay has confirmed that its guidance for underlying EBITDA (earnings before interest, taxes, depreciation, and amortization) and free cash flow for 2024 will remain unchanged.

This announcement marks a critical juncture for Solvay as it seeks to streamline its operations and realign its production strategies in response to evolving market demands. The decision to halt production at the Salindres site underscores the company’s proactive approach to managing financial pressures and optimizing its portfolio for future growth. Solvay is committed to maintaining open dialogue with its stakeholders throughout this process, ensuring that all voices are heard as the company navigates these challenging circumstances.

Solvay, a leading chemical company founded by Ernest Solvay, is committed to providing essential solutions worldwide with a dedicated workforce of over 9,000 employees. Established in 1863, Solvay leverages the power of chemistry to develop innovative and sustainable solutions that address critical global challenges. These include purifying the air and the water, preserving food supplies, enhancing health and well-being, creating eco-friendly clothing, making automotive tires more sustainable, and ensuring the cleanliness and protection of homes. With a strong focus on sustainability, Solvay aims to achieve carbon neutrality by 2050, emphasizing its commitment to a fair and just transition. In 2023, the company reported net sales of €4.9 billion and is publicly listed on Euronext Brussels and Paris under the ticker SOLB.