Renewed demand from Europe, continued steady progress in the US and a 40% surge in exports to Asia, along with internal restructuring measures, helped French chemicals and plastics producer Elf Atochem SA (HQ: 4 Cours Michelet La Défense 10, F-92091 Paris-La Défense) to a profit turnaround in 1994. At the annual press conference in Deauville, President Jacques Puechal said operating profits bounced back to FF 1.85bn, follownig a loss of FF 180m in recession year 1993. Sales rose 9% to FF 53.5bn. Structural improvements led to cost savings and added FF 800m to turnover, he said, while FF 1.2m of the increase is attributed to the better economic background.

In the recent past, plastics and petrochemicals operations at Elf Atochem have reaped substantial benefits from a reorganisation project, which began with polystyrene in 1991-92 and extended to ethylene/polyethylene (1993-95). A major element was the 1994 agreement with Union Carbide in polyethylene specialities. In 1994, the Petrochemicals and Commodity Plastics division saw sales growth of 21% to FF 10.8bn. Chemicals and Vinyls sales picked up by 10% to FF 6.2bn.

In Deauville, executive vice president, Arsène Schun, who has responsibility for the group's plastics business, pointed to "double-digit growth" for polypropylene last year, in line with market development. Polystyrene made only slow progress, but began to recover lost ground in Q1 1995. Schun said he expects PP to weaken over the course of the year. In this connection, he predicted further price increases for PS, contrasted with a "stabilisation" for PP and its precursors. He said Elf Atochem is particularly satisfied with its PVC business and sees continued good chances for this polymer, despite the "somewhat exaggerated" environmental discussion.

Over the next several years, the French plasticsmaker plans to continue its restructuring programme and round out its activities in specialities (including technical polymers and plastics processing) through acqusitions and further product innovations. Special attention will be focused on Asia/Pacific markets, where the group is building a new plant for vinyl compounds in Vietnam.

READER SERVICE: Press conference speech (English) by J. Puechal, with numerous charts (English): PIE-No. 37548 – Information "Elf Atochem in Asia" (German / English): PIE-No. 37547.