Despite the extremely unsettled climate prevailing in the chemical industry worldwide, the French chemicals group, Elf Atochem S.A. (HQ: 4, Cours Michelet, La Defense 10, F-92091 Paris La Defense), was able to keep overall sales virtually constant at EUR 8.74bn (1997: EUR 8.85bn) over the past financial year. The increased competition had a negative impact on net profits, however, with the group´s operating results falling 6% from EUR 622m to EUR 584m in 1998.As Elf Atochem president, Jacques Puechal, announced at this year´s balance sheet press conference in Paris, the chemical company´s increasing focus on speciality chemicals in the broadest sense of the term (this field accounts for two thirds of group sales today) was able to “sustainedly cushion” the losses incurred on the basic chemicals market, but also for commodity plastics PVC, PE and PP.While the Basic Chemicals Division had to contend with a decline in its operational result from EUR 255m to EUR 235m, with sales standing at EUR 3.7bn (down 11% on the previous year), sales rose slightly in the two other divisions of Fine and Industrial Chemicals and Performance Products. The latter even recorded a small rise of EUR 5m in its results, to EUR 255m.Despite difficult conditions for standard plastics, Elf Atochem is intending to press ahead with growth in Europe. The agreement with Solvay in Spain (see PIE 04, 1999) regarding the concentration of PVC production as of 2001 (230,000 t/y) is designed to enhance global competitiveness. In the case of polypropylene, overall capacity of 700,000 t/y is to be achieved by the year 2000 through “considerable investment” in Gonfreville (France) and Grangemouth (Scotland).With the acquisition of the acrylic resin activities of Hanwha Chemical Corp. in Korea and also of Rohm & Haas´ shares in the AtoHaas joint venture (see PIE 03, 1998) – operating as Atoglas since 1998 – Puechal says that Elf Atochem is reinforcing its position as world market leader in acrylic polymers.In Germany, Elf Atochem claims to have achieved its best result since 1990 last year. Sales at subsidiary, Elf Atochem Deutschland, remained almost constant at EUR 570m (560m), yet the company was able to raise its operating result to EUR 16.05m (EUR 5.78m). Together with the associated companies of Atotech, Ato Finley, Altemax, Alphacan Omniplast and Turco Chemie, which come under different consolidated groups, Elf Atochem increased its total sales in Germany by 2.6%, to EUR 850m, in 1998.Detailed press conference documents on the course of business in 1998 (English): PIE-No. 43727.