MOSCOW (MRC) -- Air Liquide launched a transformation strategy covering 2016-20 that targets revenue rising at a compound annual growth rate (CAGR) of 6-8%; annualized efficiency gains of more than EUR300 million (USD331.5 million); and synergies derived from the acquisition of Airgas totaling more than USD300 million, said Chemweek.
The company also sees return on capital employed (ROCE) of more than 10% after 5-6 years.
The plans were unveiled by Benoit Potier, chairman and CEO, during the company’s capital markets day, held in London. "The group has acquired a new dimension following the acquisition of Airgas and thus enters a new phase of its development. Our strategy for profitable growth over the long term is that of a customer-centric transformation," Potier said, announcing the program, dubbed NEOS.
The current business environment is characterized by moderate worldwide growth and major changes related to scientific and technological advances, and new usages and consumption patterns that impact the needs of the Air Liquide group’s customers. Air Liquide says it has identified three major trends that are sources of growth for all of its businesses: energy and environment transition, changes in health care, and digitization.
The acquisition of Airgas, completed in May 2016, has enlarged the group with combined sales of gas services increasing 30%. Air Liquide has strengthened its worldwide market leadership by rebalancing its European and American positions, particularly in the United States, the world’s largest industrial gases market and the most advanced in innovation and digitization.
Air Liquide is targeting growth in industrial merchant gases sales at a CAGR of 7-10%; health-care business revenue growth at 6-8%, including selective bolt-on acquisitions; and electronics-segment sales growth of 7-9%.
As MRC informed earlier, Air Liquide opened a 25-million-euro (USD27.6 million) research and technology center in Shanghai to address issues including carbon dioxide emission reduction and waste water treatment in China and Asia-Pacific.
L'Air Liquide S.A., or Air Liquide, is a French multinational company which supplies industrial gases and services to various industries including medical, chemical and electronic manufacturers.
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