Thomas Wrigglesworth

In a follow-up, Thomas Wrigglesworth of Morgan Stanley asked for more detail on the rare earth chemicals supply from China, specifically if Solvay was building inventory to mitigate tariff risks or if the situation was business as usual.

Answer

CEO Philippe Kehren clarified that the primary issue is not tariffs but an export control implemented by China on certain heavy rare earths. He explained that Solvay needs these materials for its autocatalysis business, is currently operating with existing inventory, and is actively working with Chinese authorities to secure the necessary licenses to continue exporting in the future.

In a follow-up, Thomas Wrigglesworth of Morgan Stanley asked for more detail on how Solvay is adapting to Chinese export controls on rare earths, specifically if it involves pre-stocking inventory.

Answer

CEO Philippe Kehren clarified that the company is currently operating using its existing inventory of heavy rare earths needed for the autocatalysis market. He emphasized that Solvay is actively working with Chinese authorities to secure the necessary licenses to ensure continued exports for the future.

Inquired about the Q1 volume decline, the growth prospects for bicarbonate, the impact of tariffs on the Specialty Chemicals business in China, and the logistics of exporting rare earth chemicals from China amidst trade tensions.

Answer

The expected soda ash recovery has not materialized due to market uncertainty and a delayed restart in flat glass. Bicarbonate growth remains strong, driven by flue gas treatment and pharma. The company's tariff exposure is limited due to its local-to-local model, with the main concern being Chinese export controls on heavy rare earths, for which they are working to secure licenses and currently using inventory.