Clariant to cut costs
Swiss specialty chemicals company Clariant International Ltd has announced that it is to increase its focus on value creation by reducing the company’s cost structure, cutting net working capital and strengthening its performance. At a total estimated cost of CHF500 million ($402.96 million), the initiatives will include a 10% reduction in the site network, resulting in the loss of approximately 2,200 jobs and reducing its number of products by at least 25%.
These initiatives are the result of a wide review over the past six months of Clariant’s strategy, organisational effectiveness, portfolio components and operating practices.
Clariant plans to build on its strengths in colours, surfaces and performance chemicals. The group’s four divisions – Textile, Leather & Paper Chemicals; Pigments & Additives; Masterbatches, and Functional Chemicals – are to be supported by increasingly centralised and efficient group functions, including sourcing, supply chain management and site services. Clariant began centralising these areas last year and considerable potential is seen to reduce costs further by more effective purchasing and by pooling expertise. This will necessitate closing numerous sites over the next four years, with the main focus in
New initiatives will also be launched across the group to boost growth in fast-growing markets in
The number of products Clariant sells will be reduced by at least 25%. The company has already reduced products in its textile dyes business, where the portfolio has been cut from approximately 3,000 products to about 500 products over the past year.
