Clariant makes a step change into higher value specialties

For the Business Area Catalysis, Clariant targets continued above market growth rates by maintaining and capitalizing on its innovation leadership and strong licensing partnerships. Within Catalysts, the introduction of highly innovative and customer-specific catalysts is the key driver for future growth. Sustainable solutions such as the reduction of hazardous materials, thereby providing a much improved toxicological profile also adds to the growth. The Business Line Biofuels & Derivatives will contribute to the growth acceleration which is mainly driven by the global search for more climate-friendly energy sources and the legal frameworks set out in Europe, the US and China. Clariant expects to generate sales of at least CHF 100 million from licenses for the sunliquid technology and bioethanol sales from the production plant in Romania. The contribution from both, Biofuels & Derivatives and new customer specific catalysts will significantly expand the profitability of the Business Area Catalysis by 2021.

Within the Natural Resources Business Area the Oil & Mining Services activities are expected to build up momentum as general demand and a rebound of the oil market improves the industry outlook. Differentiated business steering according to the changing business landscapes combined with technology and innovation will result in sustainable strong growth. Within Functional Minerals growth will be driven by entering new regional markets and moving into new applications through innovations such as smart and active packaging within feed and agro. As a consequence of the growth in both Business Units the profitability of Natural Resources will further improve.

The remaining Plastics & Coatings Business Area, including Pigments, standard Masterbatches and Medical Specialties, will continue to be managed using differentiated business steering. Pigments and standard Masterbatches are anticipated to grow in line with GDP while Medical Specialties are expected to grow more quickly in accordance with their underlying end market in health care packaging. The profitability of Pigments and standard Masterbatches is expected to sizably improve via stringent cost management, while Medical Specialties will benefit from innovations resulting in profitable growth.

Summary

With Clariant's new High Performance Materials Business Area and the compelling outlook at Care Chemicals, Catalysis and Natural Resources, the Clariant Group will be able to provide an enhanced portfolio and solution offering. This will facilitate the Group's ability to better realize its full potential and deliver higher growth and profitability faster. The resulting increase in earnings quality and operating cash flow will enable the group to uphold an attractive dividend policy, i.e. to increase or at least maintain the absolute dividend amount in Swiss francs every year. Clariant is a dedicated and strong partner who provides innovative, specialized solutions for profitable growth and a sustainable tomorrow.

Source: Clariant