Rhodia was a group founded in 1988 that specialized in fine chemistry, synthetic fibers, and polymers.
The company was acquired by the Belgian Solvay group in September 2011 in a deal valued at €3.4 billion. The company served the consumer goods, automotive, energy, manufacturing, and processes and electronics markets, and had 65 production sites worldwide, four research centers, and four joint laboratories.
History Rhodia was a public company that was founded on January 1, 1998, following the spin-off of the chemicals, fibers, and polymers activities of Rhône-Poulenc when it merged with the German company Hoechst. On June 25, 1998, Rhône-Poulenc sold 32.7% of its share in Rhodia's capital to the public. In 1999, Rhodia made two acquisitions: The Engineering Plastics activity of the top Korean group Hyosung, for Rhodia's Polyamides business unit. The Iberica Mix & Fix Center activity of Quimica Dos. The Mix & Fix Center is a unit that formulates and sells ready-to-use hot vulcanizable silicone Elastomers.
From October 1999, Rhône-Poulenc, which became Aventis then Sanofi-Aventis, gradually reduced its stake in Rhodia's capital. It sold all its shares in the company on October 17, 2006.
Rhodia grew in the United Kingdom and the United States by buying out Albright and Wilson and ChiRex. In 2002, Rhodia sold off its basic chemical activities in Europe (phenol, hydrochloric acid, sodium carbonate) and its holdings in Latexia (which was the world's number two for latex for paper) and Teris (treatment of toxic waste). In 2004, Rhodia sold its food ingredients business. On March 31, 2004, was appointed chairman of the board of directors.
In 2006, Rhodia sold its latex business, its synthesis activity, and its facilities for the production of industrial wires and fibers in Europe. 2006 also saw the creation of Orbeo, a joint venture with Société Générale, in the field of origination, trade and sale of carbon credits. Orbeo represents 8% of the carbon market.
In 2007, Rhodia sold its silicones production activity and its Nylstar subsidiary (synthetic textile fiber) and acquired the alumina activity of WR Grace. In 2008, Rhodia sold its fine organic chemicals and pharmaceutical activities. On March 17, 2008, the board of directors appointed Jean-Pierre Clamadieu as the chairman and CEO of Rhodia. This appointment followed the resignation of Yves-René Nanot from his position as the chairman of the board of directors as a result of the statutory conditions applying to age limits.
In 2009, Rhodia acquired two companies: OneCarbon International and the McIntyre Group (specialized surfactants, United States). In 2009, the Belgian chemicals group Solvay launched a friendly public takeover bid for Rhodia. In 2010, Rhodia acquired an 87% stake in the capital of Feixiang Chemicals. On January 1, 2011, Rhodia set up a new organization. Operational activities are now organized in 11 business units, in five sectors of activity: Consumer Chemicals, Advanced Materials, Polyamide Materials, Acetow & Eco Services, and Energy Services. The additional Support Function Group includes corporate activities.
On March 8, 2011, Rhodia announced the finalization of the acquisition of the Suzhou HiPro Polymers guar derivatives production plant in Zhangjiagang, China and on April 13, 2011, Rhodia completed the acquisition of the engineering plastics activity of the Indian company PI Industries Ltd (PIIL), following the approval of the Indian authorities.
In September 2011, Solvay's tender offer on Rhodia was completed and Rhodia became a sector of the Solvay group.
Debt from Rhône-Poulenc After its breakaway from Rhône-Poulenc, Rhodia had to cope with the repercussions of soil pollution and financial liabilities. Prominent figures, such as Thierry Breton and the Swiss banker Édouard Stern, were involved in trying to work out solutions. The group's balance sheet-based structure remained fragile due to negative equity. On December 31, 1999, Rhodia's debt inherited from the split with Rhône-Poulenc amounted to €1,540 million. In an attempt to solve the group's debt problem, management renegotiated a debt estimated at €1 billion in 2010 (Rhodia's lowest debt level since the group was created ). Declared tangible investments in 2009 totaled €167 million, compared with €241 million in 2008.
Commitment to Sustainable Development In 2003, Rhodia set up a department dedicated to sustainable development.Boiral, O. (1997), "La Qualité au service de l’environnement," L’Expansion Management Review, no. 86, September, pp. 41-49 In 2007, it rolled out the "Rhodia Way", the group's reference framework of responsibilities toward stakeholders. Group employees can use this reference system to self-assess the performance of their entity in terms of social and environmental responsibility, to encourage more responsible practices.
Group activities Consumer Chemicals Consumer Chemicals is made up of three business units: Novecare, Coatis, and Aroma Performance, which mainly service the consumer markets. In 2010, Consumer Chemicals posted revenues of €1,883 million, representing 36% of the Rhodia Group's revenue.22Breakdown of revenue by market sector in 2010. <15% oil and gas, >10% agrochemicals, about 35% consumer goods, about 25% manufacturing and processing, about 15% construction and coatings.
Novecare Novecare supplies high-performance chemicals to industries in the cosmetics, detergents, agrochemicals, coatings, oilfield and industrial applications sectors. The company has 15 production plants worldwide. Novecare acquired the activities of the US company McIntyre, followed by the activities of Feixiang, China's leading producer of amines and surfactants in 2010. Consequently, Rhodia is now the leading producer of specialized surfactants in Asia. With a turnover of €1,089 million in 2010, Novecare accounts for 58% of Consumer Chemicals’ revenue.
Coatis Coatis principally supplies the paint, surface coatings, automotive, wood and construction industries with phenol, phenol derivatives and oxygenated solvents. The company has one production plant in Brazil and three technical development centers. With a turnover of €449 million in 2010, Coatis represents 24% of Consumer Chemicals’ revenue.
Aroma Performance As the world's leading producer of diphenols, Aroma Performance supplies aromas and fragrances. Key products include vanillin and ethylvanillin, but also hydroquinone or catechol. Aroma Performance is active worldwide in markets in Europe, Asia, South America, and North America. The company has five manufacturing plants worldwide. With a turnover of €345 million, Aroma Performance accounts for 18% of Consumer Chemicals revenue.
Polyamide & Intermediates Polyamide & Intermediates produces polyamide 6.6 and intermediates based on adipic acid for the automotive industry, sports apparel, leisure activities, construction, and electrical and electronic components. The entity covers the complete polyamide chain, from the production of intermediates and polymers to the development of high-added-value technical plastics. Polyamide & Intermediates has seven production plants and two technical development centers worldwide.
Acetow & Eco Services Acetow & Eco Services is active in the energy and consumer goods markets. The branch includes the Acetow and Eco Services business units. With a turnover of €790 million in 2010, Acetow & Eco Services accounts for 15% of the Rhodia Group's revenue. Breakdown of revenue by market sector: about 65% consumer goods, about 20% energy, and 15% others.
Acetow Acetow is the third-largest producer of industrial textiles made of cellulose acetate particles. Its main markets are in Europe, the CIS, Asia, and Latin America. Acetow is the world's third largest producer of cellulose acetate for cigarette filters, supplying about 18% of the worldwide market. The company has five production plants worldwide. With a turnover of €539 million in 2010, Acetow represents 68% of the Acetow & Eco Services combined revenue.
Eco Services Eco Services is a service company that regenerates sulfuric acid for the chemical industry and oil refineries in North America. Sulfuric acid is used as a catalyst in the production of alkylate, one of the fundamental components of high-octane index gasoline. The Eco Services network is made up of eight production units on seven different sites in California, Texas, Louisiana, and Indiana. Two of them also provide chemical waste treatment services.
In 2010, Eco Services posted a turnover of €251 million, which accounts for 32% of the Acetow & Eco Services activities’ revenue.
Energy Services Energy Services is responsible for energy supplies and the management of Rhodia's projects to reduce greenhouse gas emissions. Energy management embraces the purchasing, production, and sale of energy. In the field of purchasing, mainly of gas and electricity, Energy Services managed €630 million of energy purchases in 2009, 68% of which were for Rhodia's own needs, while the remaining 32% were for third parties, notably for the Group's partners in its joint ventures. In France, Rhodia is the second-biggest industrial buyer of gas and one of the top ten purchasers of electricity. Energy Services has invested in biogas technology by acquiring the Econcern group's share of six biogas production pilots in China and Vietnam. With revenues of €203 million in 2010, Energy Services represents 4% of the Rhodia Group's turnover and operates four industrial plants in Brazil, China, France, and Vietnam. In 2010, Rhodia Energy Services developed its "Climate Care" solutions for the production of energy from renewable biological materials. Two biogas projects in China, and Vietnam and the partnership between the private company Paraiso and Eco Services in Brazil have provided an opportunity to develop a biomass project based on bagasse.
Production sites Rhodia has 65 production sites worldwide.
Worldwide distribution Continent Share of Rhodia Revenue Numbers of sites worldwide Number of employees North America 20% of the Rhodia Group's revenue18 sites 1 700 Asia Pacific 29% of the Rhodia Group's revenue 21 sites 3 400 Latin America 17% of the Rhodia Group's revenue 4 sites2 800 Europe 34% of the Rhodia Group's revenue 22 sites 6 200
Main production sites Europe Rhodia has 22 production sites in Europe, including 10 in France. The Rhodia Group is present in Germany (Freiburg), Italy (Ospiate), Poland, the Commonwealth of Independent States (CIS) (Sertow LLC), Spain and the United Kingdom.
La Rochelle According to ANDRA, the French agency for waste management, until July 1994, Electronics and Catalysis (now Rhodia Rare Earth Systems) used very slightly radioactive monazite as an ore, producing radium-bearing waste, which was initially stored at ANDRA's La Manche center until 1991, then in the French atomic energy commission's Cadarache facility. The treatment of the slightly radioactive monazite produced 8,023 tons (according to ANDRA ) of slightly radioactive solid residue up until 1994. According to ANDRA, in 2007, this residue contained 2,000 tons of uranium and 2.6 tons of toxic lead. The plant is subject to ICPE environmental surveillance. A project to launch a recycling plant for the rare earth contained in used lightbulbs is being looked into.
Asia-Pacific Rhodia currently includes a Rhodia-Asia-Pacific zone (CIS, Middle East, and Africa), managed by Michel Ybert, with an operational head office in Shanghai. This zone has 21 production sites and accounted for 29% of Rhodia's revenues in 2010. The Asia-Pacific support functions—finance, HR, purchasing, and IT—are based in Singapore The Asia Pacific zone includes production activities in China, Japan, Thailand, India, and Indonesia, plus commercial activities in China, Japan, and Korea.
South America The Rhodia Group has three production sites in Brazil and one in Venezuela.
North America