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11-26-2009

Clariant: Closure of Plants

Clariant has startet the "Global Asset Network Optimization" (GANO) project, which comprises a detailed evaluation of the company’s entire production network. The aim of the project is to address overcapacities and to reduce costs.

The sites nominated for closure are Huningue, France; Pontypridd, UK; CIVAC, Cuernavaca in Mexico; and parts of two plants at Clariant sites in Germany, at Gendorf and Frankfurt. In addition, Clariant will now initiate an evaluation of all strategic options for its site in Onsan, South Korea.

Approximately 570 jobs worldwide will be affected by the proposals. Clariant has entered into consultation with employee representatives and authorities in the affected countries. The company is committed to treating all employees in a fair and transparent manner.

Project GANO is part of a wider restructuring program at Clariant aimed at closing the gap the company has compared to peers regarding several key performance indicators. The Project addresses the structural deficits of Clariant’s production network as well as long term overcapacity issues. It will continue to identify further optimization potential.

Full implementation of the initial Project GANO proposals affecting the nominated sites, including transferring production to other parts of the Clariant site network, is expected to be completed between 2011 and 2013. The restructuring costs amount to approximately CHF 150 million, the vast majority will be booked in 2009 and 2010.

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