Cosmetics & Personal Care
Clariant makes a step change into higher value specialties 18th September 2018
Clariant, a world leader in specialty chemicals, today announced an updated strategy and financial outlook as well as the signing of a Memorandum of Understanding with SABIC on a significant collaboration opportunity between the two companies in the area of high performance materials. The Group intends to expand more strongly by focusing on customer-specific products and solution offerings with attractive growth prospects and above average value potential.
By 2021, following the creation of High Performance Materials and the divestment of the remaining Plastics & Coatings Business Area, Clariant expects to deliver significantly higher sales of around CHF9 billion and an EBITDA margin of approximately 20% with an operating cash flow of more than CHF1.2 billion.
Key outcomes from these developments are:
- Creation of a new and stronger Clariant with sales of approximately CHF9 billion and an EBITDA margin of around 20% in 2021
- Intended transaction to combine Clariant’s Additives and high value Masterbatches with parts of SABIC’s Specialties business to form the Business Area High Performance Materials which will provide customers with significant benefits and strategic advantages
- Remaining Plastics & Coatings business (Pigments, standard Masterbatches and Medical Specialties) to be divested by 2020
- The new Clariant will benefit from an enhanced specialty portfolio, creating the basis to accelerate profitable growth and become a leading player in each of its Business Areas
- Attractive prospects in Care Chemicals, Catalysis and Natural Resources with further improvements in margins
- Clariant is a dedicated and strong partner providing innovative, specialized solutions for profitable growth and a sustainable tomorrow.