Clariant plans to divest its pigment, standard masterbatches, and medical specialities business by 2020. The decision was taken a later after the Arabian investor SABIC bought 24.99% of shares in the firm Clariant.
This decision of divesting came up owing to the prevailing trend of being a specialist firm and not a conglomerate. The firm plans to focus on moving its portfolio in higher speciality areas to maintain efficiency and effectiveness for its business. The firm has maintained exceptionally well financial and market position over the years and has had fruitful profits. The businesses being divested does not match their criteria to be the pioneer in innovation and explore high profitable areas.
Clariant has signed a memorandum of understanding with Arabian investor SABIC on the prominent collaborating strategies between the two in the making of high material performance segment. The firm also proposed a new and updated strategy and financial outlook. The focus of the firm is to provide more customer specific products and solutions to attain better growth prospects and high value potential along with expansion.
Owing to the creation of the new high material performance segment and divestment of plastic and coating business by 2020, the firm expects to increase the number of sales to around EUR 8 billion and also positively impact profitability as a percentage of its total revenue up to 20% along with more than EUR 1 billion as operating cash flow.
About Clariant: Clariant is a comprehensive manufacturer of specialty chemical products. It is a Switzerland-based company and operates through four business areas: Care Chemicals, Catalysis, Natural Resources, and Plastics and Coatings. The company’s products application is in industrial, home care, crop protection, paints and coatings, automotive, plastic, transportation, refining and pharmaceuticals markets. It operates through a network of manufacturing facilities, research and development, and technical centres across the world.
— Vasundhra Singh,
Assistant Research Executive,