Solvay boss sees trade war affecting business strategies

Jean-Pierre Clamadieu, the CEO of Solvay and Engie's president, believes that if the trade war persists, it could affect business location strategies. Solvay's investments in the United States could be called into question.

The commercial war unleashed by the US administration risks calling into question the investment strategy of companies in choosing the location of their activities, said Sunday at Reuters Jean-Pierre Clamadieu, CEO of Solvay

    
     and new president of Engie

" The strong interrogations on the world trading system which go from Brexit to the commercial war between the United States and China, this are elements of concern for the companies on a rather essential decision, their investments, "he said on the sidelines of the meetings in Aix en Provence.

Regarding Solvay, he estimated that the return of customs barriers could call into question the continuation of investments of the Belgian chemist in the United States

"If one settles durably in a commercial war, it puts in question our strategies of localization (of our activities)", he said, adding that this question was shared by many business leaders

While tariffs were so far a "secondary" topic in the reflection on location (business activities), the trade war can have an impact on their structural investment decisions, continued the leader.

Trade tensions have less impact on Engie, which tends to produce and sell in the same geographical area

"Either it is an epiphenomenon and Mr. Trump returns to the reason, is one in a situation where the localization of the activities will change fundamentally "he added.

In this context, in Europe, the risks of friction or even cracking exist, especially on sensitive subjects such as the automobile.

According to Jean-Pierre Clamadieu, Europe has the institutional tools, "but what it lacks are strong leaders who can punch their fists on the table with all the force they need."