A hydrogen peroxide factory run by Solvay in Saudi Arabia has been halted since mid-March due to the war in the Middle East, the Belgian chemical company reported in its quarterly results.
The facility, located in Jubail, a port city on the Persian Gulf, is one of the world’s largest hydrogen peroxide factories.
Operated as part of a joint venture between Solvay and Sadara, the factory stopped production due to supply chain disruptions. A spokesperson confirmed there has been no physical damage and employees are safe.
While the conflict in Iran had limited effects on Solvay's financial performance during the first quarter, the company noted that less than 5% of its total revenue comes from the region. The impact moving forward will depend on when operations in Jubail can resume.
The company overall saw a mixed performance in the first quarter, with revenue and earnings EBITDA significantly down compared to the same period last year and falling short of analyst expectations.
Revenue declined by 11.1% to €997 million, while EBITDA (earnings before interest, taxes, depreciation, and amortisation) dropped by 12.4% to €219 million.
CEO Philippe Kehren stated that he does not anticipate an immediate improvement in market conditions. “In response, we are implementing targeted measures to address these challenges as necessary, while maintaining a strong focus on cash flow generation,” he said.
