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Clariant Specifies Growth Strategy

The new Clariant Innovation Center, here during the opening in 2013, hosted the 2014 Capital Markets & Media Day (figure: Clariant)

During its 2014 Capital Markets & Media Day, held June 25/26 at the new Clariant Innovation Center (CIC) in Frankfurt, Germany, Clariant International Ltd, Muttenz, Switzerland, specified its innovation- and sustainability-driven growth strategy. CEO Dr. Hariolf Kottmann and senior management emphasized innovation focused on market and customer needs and attractive growth markets as a key element in Clariant’s growth strategy for 2014 onwards.

Innovation is expected to contribute 1-2 percentage points annually to sales growth, thus helping Clariant to achieve its 16-19% EBITDA margin target in 2015 and beyond. For 2014, Clariant targets an EBITDA margin before exceptionals above last year’s 14.1% by focusing on cost efficiency and profitable growth. The CEO was joined by CFO Patrick Jany for an outline of the financing strategy going forward, as well as key decision criteria for innovation and investment. Jany reinforced Kottmann’s position that sustainable long-term value creation is based on innovation and growth. He cited that significant investments into these areas will be maintained at current levels in the coming years. Clariant reported R&D expenses of CHF 199 million in its 2013 P&L statement. Jany went on to highlight Clariant’s strict selection of projects to ensure proper allocation of resources. This is determined by a differentiated business steering approach geared toward attractive markets and growth regions. In 2014, 62% of investments will be in emerging markets and North America, compared to 36% in 2013.

Innovation-Related Investments

CEO Dr. Hariolf Kottmann (figure: Clariant)

CEO Dr. Hariolf Kottmann (figure: Clariant)

Specific innovation-related investments include:

  • New state-of-the-art regional headquarters in India, inaugurated in June 2014, to expand capacity, and generate value through focusing on technology , enhanced efficiency and greater service satisfaction for its customers. The new facility in Navi Mumbai will eventually house around 400 employees across the various service functions and the businesses of Pigments, Additives, Industrial & Consumer Specialties, Masterbatches, and also their technical service teams.
  • New Center of Excellence laboratory for Clariant Oil Services in Kuala Lumpur, Malaysia. The new R&D facility will expand Clariant’s industry-leading laboratory work and product distribution to Asia-Pacific customers. Business Unit Pigments will operate a Technical Service Center from this location, serving customers throughout South East Asia.
  • Investment in extending application and development labs in Indonesia for customers in the personal care and industrial care sectors. New state-of-the-art research center for the Catalysts business in Shanghai, China, by 2015. With the goal of developing catalytic solutions tailored to Chinese market requirements, research will primarily focus on coal-based applications.

Production Expansions

Reinforcing Clariant’s leadership position in innovation, the company is undertaking several production expansions to meet increasing demand for its innovations, including:

  • New capacity in Europe for global customers of Clariant’s sustainability-promoting Licocene Performance Polymers. The 50% increase at its facility in Frankfurt-Höchst will support the double-digit growth in demand since the unique metallocene polyolefins were launched in 2006. The new capacity will come on stream in Q1 2016.
  • In response to increasing demand for its Glucamide-based products, the Business Unit Industrial & Consumer Specialties has initiated a production capacity expansion at Clariant’s Glucamide unit in Gendorf, Germany, to come on stream in 2015.
  • Clariant’s new Ziegler-Natta (ZN) polypropylene catalyst production plant in Louisville, Kentucky, is on schedule to begin production in 2015. The plant is part of a long-term strategic partnership between Clariant’s Business Unit Catalysts and CB&I’s Lummus Novolen Technology. Based at Clariant’s largest US production hub, the state-of-the-art facility will combine innovative catalysts - jointly developed by both companies with high capacity output to serve the fasting growing polypropylene industry.
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Company profile

Clariant International Ltd.

Rothausstraße 61
Tel.: +41 61 4697747
Fax: +41 61 4697587


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