Clariant Headquarters Muttenz, Switzerland

Clariant businesses are organised into five divisions pigments and additives masterbatches textile, leather and paper chemicals functional chemicals, and finally life science and electronic chemicals. Several polymer additive products have been mentioned already in Chapter 5. They include waxes, UV and light stabilisers, antioxidants, antistatic agents, flame retardants and phosphorus flame retardants. Some additives are targeted at other industries besides plastics. The company claims to be the world leader in pigments. 

Clariant made losses in 2001 and 2002, although the latter was caused mainly by a write down of its hfe science unit. Business recovered in 2003 but the company now employs slightly fewer people - about 26,500 compared with 28,000 in 2002. It intends to have shed 1,500 jobs in its 

A number of business units have reeently been sold in an attempt to improve the eompany s financial position, which helps to explain the reduction in sales. They include the electronic materials imit to Carlyle, cellulose ethers to Shin-Etsu, and Lancaster Synthesis to Johnson Matthey. Further divestments are expected. Some of the companies sold were especially dependent on petroleum intermediates, and their loss makes Clariant feel less vulnerable to fluctuating crude oil price rises. 

A CHF 920 M rights issue has been used to strengthen the company s position. The net debt has been roughly halved and was CHF 1.84 billion in mid-2004. A loss after write-downs of CHF 648 M in 2002 was followed by a profit (before interest and tax) of CHF 559 M in 2003, but sales were still down 3% to CHF 8.52 billion. Clariant s pigments and additives division achieved sales of CHF 1,814 M in 2002 and CHF 1,745M in 2003. Dividend per share was 15 cents in 2003. 

Clariant s masterbatch division has done well recently, with a 5% rise in sales to CHF 1.041 billion (662 M euros), and the unit is being made into a freestanding business. 

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