Improved competitiveness

Against an increasingly competitive backdrop, the level of performance of industrial plants and their adjustment to market trends is a key component of the competitiveness of Arkema, so the Company’s industrial strategy aims to secure in the short term world-scale industrial facilities, improve their operational performance, shut down loss-making production lines, and optimize fixed and variable costs.

Reducing fixed costs

The efforts made since Arkema’s creation have been reflected in aggregate savings of 230 million euros between 2005 and 2007. Part of these savings come from a reduction in the headcount related to a number of restructuring plans, whose labor and social issues have been handled in an exemplary manner. These efforts have also targeted a reduction in non-payroll costs, in particular overhead costs, the relocation of the headquarters being a significant example.

Optimizing variable costs

Energy and raw materials are poised to maintain high price levels over the long term. By improving processes and reducing energy consumption, Arkema optimizes the control of its variable costs, fully in line with its sustainable development approach.

In 2007, Arkema implemented or announced several restructuring plans designed to improve its competitiveness, including the ongoing consolidation of chlorochemicals, the relocation and reorganization of the Headquarters, the proposed closure of the Bonn facility in Germany, the streamlining of the fluorochemicals production plants at the Pierre-Bénite facility in France, the evolution of the Marseille Saint-Menet facility in France, the shutdown of one production line at the Vlissingen facility in the Netherlands, and the improvement of competitiveness at the Lacq-Mourenx and Carling facilities in France.