Clariant Unveils Wide-Reaching Corporate Transformation Program

07-Aug-2003

Roland Lösser, Clariant's new chief executive, announced today a wide-reaching corporate transformation program that will significantly reduce debt, cut costs, and re-establish the group as one of the leading specialty chemicals companies.

The program, which is the result of an extensive internal review, includes the sale of the Cellulose Ethers and Electronic Materials businesses and the closure of four agrochemicals plants. Overall, the program targets more than CHF 1.5 billion in proceeds from asset sales and aims to increase the pre-tax return on invested capital (ROIC 1 ) within the next three to four years to at least 12%, up from the current level of around 7%. Stable Financial Situation.

In detailing the newly sharpened strategy, Mr. Lösser said Clariant will focus mainly on businesses where it can combine its strong customer service capabilities with ist leading-edge surface and color technology. "We have a lot to be proud of in this area," Mr. Lösser said. "Clariant has already very successfully built many of these types of businesses, for example Masterbatches, Performance & Process Chemicals, Textile Chemicals and Coatings. We will build further on these strengths."

Mr. Lösser said that in addition to Cellulose Ethers and Electronic Materials, several other businesses will be sold. "Meanwhile we will ensure that their value is maintained and in some cases improved. We are fully committed to delivering to customers of these businesses Clariant's high quality standards," he said. The businesses Clariant has decided to sell are either not central to the new focus, carry high investment requirements or cannot achieve leading market positions. Interest shown by potential buyers has been highly encouraging and the company is confident of achieving the target of raising over CHF 1.5 billion in proceeds. Clariant also has several under-performing businesses where the company, after having considered all options, believes internal restructuring must be the first priority. This restructuring includes the Life Sciences division, where four Custom Synthesis plants producing agrochemicals in the U.S. and in Germany will be closed, resulting in a workforce reduction of approximately 200 employees.

https://www.chemeurope.com/en/news/27506/clariant-unveils-wide-reaching-corporate-transformation-program.html