ChemicalBranch Reorganization
Total S.A.
19 February 2004
PROPOSED REORGANIZATION OF TOTAL'S CHEMICALS BRANCH
PROPOSED CREATION OF A NEW
CHLOROCHEMICALS, INTERMEDIATES AND PERFORMANCE PRODUCTS ORGANIZATION
Paris, February 19, 2004 - Like Europe's other chemical actors, Total's
Chemicals branch is facing a difficult environment. It has to contend with acute
competition in a climate of weak demand, high energy and raw materials costs,
and a major depreciation of the dollar relative to the euro.
In the light of this situation, the Group is studying a reorganization of its
Chemicals branch which would entail lighter functional organizations as well as
the creation, alongside Petrochemicals and Specialties, of a decentralised
organization consolidating the Chlorochemicals, Intermediates and Performance
Products assets.
This new organization will be in a position to adapt to market trends with more
flexibility through a structure which is closer to its customers and more
reactive in its decision-making processes, and which relies on coherent
industrial activities. It will be run by Thierry Le Henaff (*), and will enjoy
significant operational autonomy.
The performance of these businesses is affected by the current economic climate
in Europe, and, accordingly, the new company's priority will be to improve
results. On the strength of these improvements, it will pursue its development,
in particular in Asia.
The new company will aim to become a competitive and independent actor. With a
sound financial structure, it will have the opportunity to play an active role
in the consolidation of the chemical industry.
Petrochemicals continue to implement synergies with Refining, and should speed
up their expansion in Asia.
Specialties demonstrate their ability to maintain a satisfactory performance,
despite an increasingly harsh environment.
With sales of some € 5 billion in 2003, the Chlorochemicals, Intermediates and
Performance Products business includes thirteen activities in which Atofina
holds leading positions in Europe and, in some cases, in the World. This is the
case of Thiochemicals (World leader), Fluorochemicals and Oxygenated Products
(No 2 and 3 respectively in the World), Acrylics and PMMA (No 3 in the World),
and Engineering Polymers (No 3 in the World).
(*) 40 year old Thierry Le Henaff is a graduate of the Ecole Polytechnique and
of Ponts et Chaussees; he also holds an MBA from Stanford University (USA).
After beginning his career with Peat Marwick Consultants, he joined Total's
Adhesives Division in 1992 where he held a number of management positions
throughout the world. In July 2001, he became Chairman and Managing Director of
Bostik Findley, the new group created from the merged Adhesives businesses of
Total and Elf Atochem.
On January 1, 2003, he became a member of the Executive Committee of Atofina
(the Chemicals Branch of the Total Group), in charge of three Divisions:
Agrochemicals, Fertilisers and Thiochemicals. He also oversees International
Affairs, Purchasing and Research. The proposal has been presented to employee
representatives.
Total is the fourth largest oil and gas company in the world with operations in
more than 130 countries. Total's activities cover the whole energy chain of the
petroleum industry: exploration, oil and gas production, refining and marketing,
trading and power generation. The Group is also a major player in chemicals
through its chemicals branch, Atofina. Total has 121,500 employees worldwide.
More information can be found on the company's website: www.total.com
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