Basel-based specialty chemicals company Clariant and its new major shareholder SABIC have announced the main features of their new cooperation. Under the terms of the agreement, SABIC will contribute its speciality chemicals business to a new Clariant business unit, which will focus on high-value materials. The new High Performance Materials business area will include Clariant’s Additives and high value Masterbatches business. Clariant intends to divest the remaining plastics and coatings business area.
With this change, Clariant expects to increase its sales to around 9 billion Swiss francs by 2021 and achieve an operating cash flow of more than 1.2 billion francs. The new business area alone is expected to contribute some 4 billion francs in sales with a margin of 24 to 25 per cent.
According to Clariant CEO Hariolf Kottman, this portfolio upgrade will enable the company “to realize a significant step change into higher value specialities, which will allow the Group to considerably augment value creation for all our stakeholders”.
Its three other business areas – Care Chemicals, Catalysts and Natural Resources – will be continued and are expected to grow profitably with sustainable innovations and specialized solutions.
Saudi chemical giant SABIC recently purchased a 24.99 per cent stake in Clariant and will appoint four new members to the twelve-person board of directors. Kottmann is to be elected the new chairman of the board at an extraordinary general meeting on 16 October, while SABIC’s current Specialities Executive Vice President Ernesto Occhiello will be appointed new CEO of Clariant.
Clariant’s headquarters will remain in Pratteln in the canton of Basel-Landschaft and its registered seat will continue to be in Muttenz. Clariant shares will remain listed on the Swiss stock exchange.
Clariant’s second largest shareholder supports the basic features of the cooperation with SABIC as it will allow Clariant to become a “top-tier player in the industry”, said Konstantin Winterstein, Clariant board representative of the shareholder families of the former Süd-Chemie.
