Chemicals giant serves advanced needs of burgeoning green economy

It took many advanced materials made by leading companies to produce Solar Impulse 2, the first solar-powered airplane to attempt an around-the-world flight.

The plane was in Japan in early June undergoing repairs and awaiting good weather. It was set to begin the most difficult leg of its trip across a vast expanse of the Pacific Ocean to Hawaii.

Employees at Solvay's research and development center in Shanghai. The Belgian company has four research and innovation centers on the Chinese mainland. Provided to China Daily

A crewmember stands underneath the Solar Impulse 2, a solar powered plane, after an unscheduled landing at Nagoya airport in Japan. Thomas Peter / Reuters

The plane took off from Nanjing, China, heading to Hawaii, but officials ordered it to land at to Nagoya on June 1 because a burgeoning cold front over the Pacific was blocking its path. It was damaged by strong winds after landing.

Despite the small setbacks, the revolutionary plane is a technological marvel. It has a 72-meter wingspan, weighs about as much as a jeep at 2.34 tons, and has horsepower similar to a motorbike. It also is an icon of clean energy.

Solvay, a global chemicals firm based in Belgium, is one of the companies that have been behind the project from the start.

Since 2004, Solvay has contributed pioneering technologies that have resulted in 13 products being used in 25 applications and 6,000 parts for the project, the company says.

Solvay plastics, fibers, films and lubricants helped reduce the weight of the SI2 and lower fuel consumption, and the company says the project led to a breakthrough in energy storage, with lithium-ion battery components improved 45 percent.

The solar-powered plane is the latest example of the potential of clean technologies, especially in China, where Solvay says it plans to expand its business even further amid growing demand for green energy and products.

Innovative technologies such as those used in SI2 are finding their way into products such as cars sold in the Chinese market.

Solvay was one of the first Western companies to invest in China, opening a base in the 1990s. The Belgian company now has 17 plants and four research and innovation centers/labs on the Chinese mainland, mostly in the east coast cities of Shanghai, Qingdao and Changshu.

"We'll continue to invest heavily in China, as the country is important in terms of commercial activities, production, and research and development," CEO Jean-Pierre Clamadieu says.

Last year, 10 percent of Solvay's global sales came from China, worth 1 billion euros ($1.1 billion).

To support Chinese manufacturing, 10 years ago the company opened the International Research Laboratory of Eco-efficient Products and Processes in Shanghai, where today technicians from the French National Center for Scientific Research and four Chinese and French universities, including East China Normal University, collaborate on eco-efficiency and physical chemistry.

As a comprehensive chemicals group, Solvay says it intends to move away from general products to tailor-made products that fit the needs of customers in China.

"Innovation occupies a leading role in our value creation strategy," Clamadieu says. "Our innovation structure is based on 15 major research and innovation centers on four continents, including nine interconnected multi-activity centers. Added to this is an open collaborative network involving our customers, academia and startups."

The four priorities, he says, are new materials for lightweight vehicles, powertrain efficiency, electrification, and green technology, all to develop its automotive business in China.

As the e-vehicle sector is one of China's emerging strategic industries, Solvay says it aims to play a larger role by providing tailor-made and new, green materials and technologies.

"The auto market is very important, as globally about 20 percent of our sales are from the industry," Clamadieu says. "We see opportunities in China. Its automotive market is developing very fast. We will develop more new technologies to meet the needs of the market."

Last year, 23.7 million vehicles were produced in China, up 7.26 percent compared with 2013, with sales reaching 23.5 million units, up 6.86 percent, according to the China Association of Automobile Manufacturers.

"The number of cars produced last year in China surpassed the total number produced in the US, Germany and Japan, indicating that China is still the world's largest automotive market, and the auto industry still has huge growth potential," says Michael Zhu, general manager of Solvay Greater China. "At the same time, China faces great pressure in environmental protection, as the heavy use of vehicles has led to air pollution and energy consumption."

Some materials Solvay has developed have been applied in the industry already. For example, its engineered polymers are used to reduce the weight of a vehicle's mechanical components to cut energy consumption and costs.

"With China's rapid development, more advanced products will be needed, so we see China as a very promising market," Clamadieu says.

Last year, 21 percent of Solvay's net sales came from products, technologies and applications less than five years old, the company says.

Zhu says the chemical company's annual R&D investment in China on average has been between 40 million and 60 million yuan ($6.5 million and $9.7 million). However, the company says the figure was 94.8 million yuan last year.

While there is a consensus on the continued growth in demand for chemicals, the areas of opportunity are becoming more nuanced, and international companies will need to adapt, says a McKinsey & Co report. One approach, it says, is to prioritize products that match what China needs and is promoting.

The Chinese government has invested 37 billion yuan to support the e-vehicle industry, with the money allocated as subsidies for automakers, suppliers, R&D institutions and consumers.

Last year, Solvay launched new marketing and sales facilities in Sichuan province, because it sees opportunities for new business in China's western region.

"Innovation, the market and geography are high on the agenda for the China expansion," Clamadieu says. "If we're successful in Sichuan, we want to continue our development in this region. We're just following the growth of China's economy."

Martin Laudenbach, Asia-Pacific president for Solvay, adds: "We're stepping up recruitment there and are training our managers to deal with the local challenges. The development of multinational talent is a key element of success at Solvay."

In terms of employees, China is the third-largest country for Solvay, after France and Brazil. Sixty percent of its executives are Chinese. China is also the largest destination market for investment. Among the company's nine construction projects now underway, three are in China.

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( China Daily European Weekly 06/12/2015 page20)