Difficult Soda Ash Market

The Solvay group has reported net earnings of £423m in its preliminary 1999 results, up 12% on the previous year, however, its soda ash market remains difficult. The group's chemicals sector, which incudes soda ash, recorded a 1% fall in sales compared to 1998. The sector accounted for 30% of the group's sales in 1999. The difficult soda ash market was attributed to exports from Easter countries, which weighed heavily on EU and Asian prices and Chinese competition affected Solvay's exports. Growth in the world demand for soda ash and efforts to improve productivity will govern the gradual improvement in the sector's margins.