CLARIANT AG
-- Clariant continues its transformation to a higher-value specialty
portfolio
-- Simplifying the Group's organization post divestments to focus on its
core Business Areas
-- Rightsizing regional organizations and service units to avoid remnant
cost
Muttenz, November 25, 2020-- Clariant, a focused, sustainable and
innovative specialty chemical company, today announced its plans to
adapt and refocus its organization post divestments. With the
divestments of Healthcare Packaging in October 2019 and Masterbatches in
July 2020 as well as the anticipated divestment of Pigments, Clariant is
transforming itself towards a higher-value specialty portfolio focusing
on its core Business Areas: Care Chemicals, Catalysis and Natural
Resources. The Group plans to rightsize regional organizations and
service units in order to avoid remnant cost, thereby reducing
complexity and increasing agility post the expiration of transitory
service agreements following the closing of the divestitures.
The rightsizing program foresees a reduction of approx. 1,000 positions
in service and regional structures. Approximately one third of the
reductions will be included in the divestment transfers. After a careful
review of the scope of all measures under consideration, Clariant has
decided to make a provision in the magnitude of CHF 70 million in
discontinued operations in the fourth quarter of 2020 for the
rightsizing program. The timeline for these measures shall extend over a
maximum of two years and will include departures attributable to natural
fluctuation. With the rightsizing program Clariant will preserve itself
from remnant cost from the recent and impending divestments. The
previously announced efficiency program is in full implementation to
reduce approx. 600 positions and realize CHF 50 million cost base
savings in the continuing business till the end of 2021.
"As we progress towards completing the next of the non-core business
disposals, we must utilize this opportunity to further strengthen
Clariant's core for a successful future. By avoiding remnant cost and
consequently reducing complexity, putting an even stronger focus on
innovation, sustainability and operational excellence, we put our
company's high value specialty businesses in a position to operate in an
even more focused and agile manner. This will help us deliver
above-market growth, higher profitability and stronger cash generation,"
said Hariolf Kottmann, Executive Chairman ad interim of Clariant.
In addition to the efficiency and rightsizing measures, Clariant
continues to emphasize organic and inorganic growth to drive its
portfolio upgrade. Clariant's transformational change offers unique
opportunities for higher value creation in 2021 and beyond.
Corporate Media Relations Investor Relations
Maria Ivek
Jochen Dubiel Phone +41 61 469 63 73
Phone +41 61 469 63 63 maria.ivek@clariant.com
jochen.dubiel@clariant.com
Claudia Kamensky Alexander Kamb
Phone +41 61 469 63 63 Phone +41 61 469 63 73
claudia.kamensky@clariant.com alexander.kamb@clariant.com
Thijs Bouwens
Phone +41 61 469 63 63
thijs.bouwens@clariant.com
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This media release contains certain statements that are neither
reported financial results nor other historical information.
This document also includes forward-looking statements. Because
these forward-looking statements are subject to risks and
uncertainties, actual future results may differ materially
from those expressed in or implied by the statements. Many
of these risks and uncertainties relate to factors that are
beyond Clariant's ability to control or estimate precisely,
such as future market conditions, currency fluctuations,
the behavior of other market participants, the actions of
governmental regulators and other risk factors such as: the
timing and strength of new product offerings; pricing strategies
of competitors; the Company's ability to continue to receive
adequate products from its vendors on acceptable terms, or
at all, and to continue to obtain sufficient financing to
meet its liquidity needs; and changes in the political, social
and regulatory framework in which the Company operates or
in economic or technological trends or conditions, including
currency fluctuations, inflation and consumer confidence,
on a global, regional or national basis. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this document. Clariant
does not undertake any obligation to publicly release any
revisions to these forward-looking statements to reflect
events or circumstances after the date of these materials.
http://www.clariant.com www.clariant.com
Clariant is a focused, sustainable and innovative specialty
chemical company based in Muttenz, near Basel/Switzerland.
On 31 December 2019, the company employed a total workforce
of 17 223. In the financial year 2019, Clariant recorded
sales of CHF 4.399 billion for its continuing businesses.
The company reports in three business areas: Care Chemicals,
Catalysis and Natural Resources. Clariant's corporate strategy
is based on five pillars: focus on innovation and R&D, add
value with sustainability, reposition portfolio, intensify
growth, and increase profitability.
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Attachments
-- Clariant Media Release Strengthen the Core 20201125 EN
https://ml-eu.globenewswire.com/Resource/Download/d7db6bf3-7bfa-4bc4-b1a6-bc2a1fc22b21
-- Clariant Media Release Strengthen the Core 20201125 DE
https://ml-eu.globenewswire.com/Resource/Download/5fabcfd1-38b7-4ce4-a17d-268a8dbbc74a(END) Dow Jones Newswires
November 25, 2020 01:00 ET (06:00 GMT)
