Clariant makes a step change into higher value specialties

Clariant makes a step change… Clariant 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 CHF 9 billion and an EBITDA margin of approximately 20 % with an operating cash flow of more than CHF 1.2 billion.

"The portfolio upgrade together with the continuation of Clariant's strategy enables the Group to realize a significant step change into higher value specialties, which will allow the Group to considerably augment value creation for all our stakeholders", said Hariolf Kottmann, CEO of Clariant.

The intended combination of Clariant's Additives and high value Masterbatches (color, high temperature resins and health care) and parts of Sabic's Specialties business will create a uniquely positioned provider of highly customer-specific high performance materials and solutions under the name High Performance Materials.

This new Business Area will offer a customer-specific, application know-how driven and competitively advantaged product range of high-performance thermoplastics for demanding thermo-electro-optical and mechanical environments, specialty additives and masterbatches in tandem with an outstanding global compounding platform. Major applications include smart electronics, health care, aerospace, automotive, robotics, additive manufacturing, renewable energy, and e-mobility. These applications demand the fulfillment of stringent customer specifications which require exclusive technology and formulation know-how.

High Performance Materials' superior ability to meet customer specifications and provide technological advantages will create the basis for an accelerated profitable growth. This foundation in tandem with cost synergies and enhanced operating efficiencies will fuel substantial profitability progression and unlock greater value creation. By 2021, sales of High Performance Materials are expected to grow to approximately CHF 4 billion from pro-forma 2017 sales of CHF 3 billion and the EBITDA margin, including synergies, to 24 - 25 % from 19.4 % in pro-forma 2017.

Global leader in the field of specialty chemicals