With this increase we must defend our margins

The Brazil change of President. You know this country, the current economic euphoria is a straw fire linked to oil discoveries

The country has of course oil, but important agro-industrial resources also. Its production of sugar cane based ethanol, particular, is very competitive, which allows its use on a large scale in fuels. The dynamism of the Brazil is also related to its population, which only a fraction has today a way of life and a style of consumption in developed countries. The rest of the population aspires to evolve in this direction and is one of the great success of the Presidency of Lula have accelerated this movement. In total, the Brazil is expected to grow from 5 to 7 in the next few years. This country has also become one of important geopolitical players in the world, whose support is being sought by the major powers.

You fear not an effect of overheating in China

Remarkably, China crossed the global crisis of 2009. The authorities have managed to replace a portion of the export opportunities through the development of internal consumption. For example, the country became the first global automotive market, with a growth of 50 between 2008 and 2009 and 20 probably expected this year. In three or four years, the Chinese automobile market will double in size. There may be effects of overheating in specific sectors such as real estate, which will require adjustments, but overall, China should pursue a path of strong growth.

Is this growth not destructive to European industry

It is instead an opportunity to seize. In the markets that we serve, I feel no direct threat, because China remains a very strong importer of chemical products. Local production is not enough to meet the needs. As our products travel little, must be present locally and invest to track the growth of the economy. We have just started a new unit of silica tyres at low energy consumption. The Asian market of tires develops in closer to European standards. To be present and grow in China, it is offering its best products.

Do you understand some of your colleagues in the CAC 40 that evoke a unfair competition from China

There is a genuine industrial policy in China. The foreign players must not be naive: this clearly displayed policy seeks to encourage the emergence of national champions. This is why, in some areas, we we pose the question of developing partnerships with local actors to be more effective. That said, we are not frontal competition: even if the Chinese players are much developed in the upstream part of chemistry, their downstream is still organizing itself. The greatest chemist of Chinese specialty, ChemChina, we know well to selling our silicones three years ago, is still in phase of consolidation and consolidation of its activities.

Industrial policy, is what is missing in the France

The France as Europe underestimate the importance of a strong, competitive industry. I met a few years ago the Minister of industry of Singapore, which had exposed me its ambitions in the industry. He wished that chemistry is the quarter of the country's GDP, whereas this sector of activity was strategic and could in particular provide skilled and lasting jobs. We would like to hear this kind of statements in Europe... Infrastructure and levels of training are generally good in Europe, but the access to energy and raw materials remains little competitive. Over the past five years, natural gas cost an average of two times more expensive than the United States and electricity costs are large increase. The politic of Europe sustainable development translates into significant regulatory constraints. If I am ready to accept on behalf of an ambition that I share, I find damage that Europe do not lead to other industrial powers like China and the United States in its wake.

You chair the commission sustainable development of the Medef. With the crisis, the carbon tax, the objectives of the Grenelle of the environment appear to have been forgotten. Is the subject exceeded

Absolutely not. The demand for a more sustainable development remains one of the trends upon which the industrial groups build their strategy, the same as the failover of the emerging world economy or the ageing of the population. The crisis could change some short term priorities, not those of long term. It is in

an element of differentiation for Rhodia: more than 30 of our turnover and 90 of our major projects of innovation are drawn by the issues of sustainable development. In the automotive sector, our offer allows manufacturers to produce lighter vehicles, which emit less CO2, and through our technical plastics, our silica or our rare.

You talk about rare earth. China plans to reduce its exports. Is there a threat of shortage

More threat, je speak point of attention. Rare are essential for their properties in magnetism, luminescence or catalysis. For technical and economic reasons, China today provides 95 of global needs ore. More than ten years, the country has implemented increasingly binding export quotas. I am not shocked that China is attentive to the manner in which it operates its mineral resources, but must be that it gives enough visibility that these actors have the time to adapt to this new situation. For we are world leader in rare earth-based formulations, the answer lies in a word: diversification. It must foster the development of other deposits. This is why we have signed an agreement with Lynas, which operates a mine in Australia and built a separation in Malaysia plant, which will be operational next year. Medium term, there is no threat of shortage and Rhodia is able to ensure security of supply to its best customers.

"Its best customers": This means that you to choose some, in this period of shortage of certain products

We actually met difficulties in some areas as the polyamide, where the case for maintenance of a large plant we was forced to limit deliveries. This gave the cold sweats to some customers, without however blocking their own production. In such cases, we of course prefer customers with whom we have a long term relationship.

And prices rise...

Overall, prices for raw materials close very high levels of 2008. With this increase, we must defend our margins. Our customers, seeking to secure their supplies include that we must increase our price and that our margins guarantee our future investments.

What is your strategy in emerging countries

We have two priorities: the Brazil and China, where we will continue to develop, after the acquisition of Feixiang announced in June. The India could be a new platform for growth, even if the quality of the infrastructure remains very average and complex legal and administrative environment. It is a democratic country of 1.1 billion people that is a very attractive market. It must be that it is there from our industrial base in strengthens surfactants used in cosmetic products. I hope that we will soon have a production unit in technical plastics, whose growth is linked to the development of the automotive industry. For us, the India is a new frontier and carry out an acquisition could be an option, provided they identify the right target.

From the dynamism of these countries, the social debate in France you think it archaic

When I see the speed at which emerging countries is progressing, I am sad to see that France, any change generates anxiety and mistrust any evolution. Rhodia has no major overstaffing in the hexagon. Almost all of our industrial sites are competitive, but we must ensure that competitiveness in the long term in serenity. It is absolutely necessary that our teams and our social partners share this vision. The evolution of emerging countries will accelerate the need for adaptation of our economies. But I am convinced that the French economy, reached by a set of large performing groups, is not condemned to decline!

How do you see Rhodia in five years

Our priority today is the growth and we we're running for this order. To release the energies, our Organization will be now built around 11 closer operational units of their markets and their customers. Each will have its own laboratories for R & D, of its buyers, its human resources and will have a broad operational autonomy. I also decided to strengthen the branch with about me three leaders team with long experience in our professions. Our ambition is that, by 2013-2015, Rhodia produces annually more than EUR 1 billion of gross operating off credits surplus carbon, which represents an increase of 40.