Are you considering slowing expan-sion in Asia ?

A. J. - We are maintaining a determinedpolicy of growth throughout the world.There are some very good opportunitiesin Asia, but we will be more selectivein terms of customers and their financialsituations.

I believe however that the Asian crisis ispractically under control now, and thatits impact on the global economy willbe less brutal than feared.

Capital spending1995-1997:

FRF 4 billion

Atdca:r7o

During the last three years theGroup committed z3 billion francs tocapital spending. Will you puruethis level of investment?A. J. - Most of these investments are

directly linked to long-term contractswith customers, and we are in no posi-

tion to decide just how Exxon or Dow

Chemical will invest in the future !

We will continue to actively seek outthese contracts. I have the feeling ho-

wever that our customers will reduce

capital spending in r998.

What do you feel are Air liquide'smain competitive strengths ?

A. J. - Our strengths have been

the very foundation of our groMh the-se last few years. I believe that the sum

of these strengths makes our group

unique.Our research and engineering centersin Europe, the US and Asia give us

some extremely advanced technologi-cal expertise. This, for example, has

MAY 1998 ISSUE

enabled the group to establish a posi-

tion in the semiconductors market,where it was virtually absent fifteenyearc aga. We have developed know-how to produce ultra-pure gases andprovide comprehensive pure gas andchemical gas services, and an enginee-.ring and distribution system to supplygas at eyery point of use in the custo-mer's plant, with Air Liquide personnel

on-site 365 days a year to operate and

monitor facilities. This is truly compre-

hensive service, which includes design,

construction and operation. This is

what our major customers, who are

refocusing on their core businesses,

want, and few groups in the world are

capable of providing this.

Would you 3ay that your pres€nce

in many regions of the world is alsoa strength?A. J. - Absolutely. A customer whowants to set up operations in a newand remote part of the world is reassu-

red knowing that a group like AirLiquide is waiting for them.Similarly, the reorganization of theGroup's merchant gas business intoz5o regions enables us to be closer toour customers with highly responsive

teams. I might also mention health-care, where our expansion strategybased on medical gases has resulted instrong growth. We have also grouped

all healthcare operations together and

set up specialized teams. Once again,

this type of organization is rather

unique in comparison with ourcompetitors. The most important factorhowever remains the quality of our menand women.

Tota I em p I oye et, 21,30 o

What do you mean ?

A.J. - A strategy is only as good as themeans you have to develop and implement

it. Skills don't just pop up out of thin air:

you must look for them, detect them, trainand develop them, and this takes years.

This is what we have done and this is

what really rnakes us different. Tribute

must be paid to the Croup's men and

women, since the succe5s obtainedthese last few years is the result of theirhard work.

How do you intend to develop humanresources IAJ. - We must further "globalize" our

management and development staff, by

promoting the exchange of executives bet-

ween subsidiaries, and between the subsi-

diaries and the Group. This gets people toknow each other better, obtain an overall

vision and communicate better. We willundoubtedly have to establish more for-

mal working methods to promote cross-

cultural-communication. We will also have

to step up the hiring of female executives.

This is a must since there is nothing worse

than a mono-cultural corporation.

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March 1998