Solvay 'slims down' and layoffs: trifluoroacetic acid and its fluorinated derivatives plant will officially stop production in 2025

Solvay announced a decision on the 24th to stop producing trifluoroacetic acid (TFA) and its fluorinated derivatives at the Salindres plant in France after consultation with its social partners.

The planned shutdown will result in the elimination of 68 positions related to the production of trifluoroacetic acid and its derivatives, and the shutdown time will be between the beginning of 2025 and October 2025.

The main reason for the suspension of production is the continued poor financial performance of the Salindres plant in recent years, which is attributed to unfavorable market conditions and is not expected to improve.

In connection with this decision, Solvay will make a provision of approximately 50 million euros in the third quarter of 2024. Most of the related cash outflows are expected to start from 2025. The guidance for basic EBITDA and free cash flow in 2024 remains unchanged.

Trifluoroacetic acid is considered a "permanent pollutant." In 2023, Solvay reached a settlement with the state of New Jersey regarding PFAS-related claims, requiring Solvay to pay $75 million in natural resource damages to the state's Environmental Protection Agency and an additional $100 million for local environmental restoration projects.