The PAREX story is that of a well-reputed French company that has little by little established its independence. Spun off from the Lafarge group in 2001, PAREX has in 16 years grown from a company generating annual turnover of 300 million euros, 70% of which in France, to a 1.034 Billion Euros (before IAS 29) group present in 23 different countries, with 72 manufacturing sites and more than 4 500 employees!
An organic growth strategy…
With average growth in excess of 7% in recent years, PAREX is the group that has recorded the highest level of organic growth, thanks largely to a strategy of geographic diversification in emerging countries and an assertive policy of advanced innovation. Indeed, over the past ten years, the share of emerging countries in our turnover has risen from 20% to 55%. Our group has established itself as a market leader in countries such as Brazil, Chile, Thailand or China and our business is evenly spread between America (28%), Asia (38%) and the EMEA region (34%). Our focus on innovation enables us to generate 15% of our turnover from products that have been on the market for less than 5 years. In a construction industry characterized by the drive to improve human habitats and by rapidly evolving modes of distribution, PAREX aims to be the preferred partner of local building communities. Thus, in emerging markets, we offer and share our expertise on solutions that bring quality and productivity to address the challenges of rapid urbanization, while in mature markets, we respond to the ever growing demand for comfort, aesthetics and environmentally friendly solutions. Specialized in dry mix products, the inventor of dustless technologies in this field, and with fast-growing expertise in organic & liquid solutions, PAREX has also demonstrated its ability to develop high-level expertise in terms of brand management and retail marketing.
However, the success of this strategy is first and foremost driven by our unique PAREX business model, based on decentralization, autonomy and trust as well as agility and reliability.”
…supported by sustained external growth
For PAREX, external growth has always been a key development driver, enabling us to strengthen our local positions, to expand synergies in specific fields and to break into new markets. PAREX places its trust in a specific business model: local brand names are often preserved, along with the existing managers and their operational teams, so as to maintain good relations with their customers and distributors. Such an approach thus nurtures the strong entrepreneurial spirit advocated by the PAREX management team and enables the development of an integrated model that can nevertheless be adapted by local teams, who retain responsibility for their performance and results.¨
The PAREX model and corporate culture
However, the success of this strategy is first and foremost driven by our unique PAREX business model, based on decentralization, autonomy and trust as well as agility and reliability. Our reputation has above all been built upon our technical expertise in the formulation of products and the provision of associated consulting services, along with the close ties that we forge with our customers in the building trade. Last, but by no means least, our international growth is founded on a combination of empowering the local teams who drive our business and delivering global expertise in terms of R&D and technical support, manufacturing processes, product marketing and retail distribution.
A new story opening…
Since May 23rd, 2019 PAREX is part of Sika, a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and motor vehicle industry.
Sika represents a great platform to continue to deliver on PAREX’s ambitious growth plan and the combination will create new exciting opportunities in terms of offering new solutions to our customers and continuing our geographic expansion.