Clariant AG

Clariant AG Overview

Company Headquarters: Switzerland

Founded: 1995

Workforce: ~13,375

Company Working: Clariant AG is a Switzerland-based specialty chemicals company that is focused on creating sustainable, high-value specialty chemicals. The company operates in four business areas: Care Chemicals, Catalysis, Natural Resources, and Plastics and Coatings. Clariant provides solutions for a wide range of industries, including agriculture, automotive, construction, and consumer goods. The company is committed to sustainability and is actively working towards reducing its environmental impact. Clariant has a highly experienced and dedicated management team that maintains a culture of innovation, transparency, and accountability.

Clariant, a specialty chemical company focused on sustainability and innovation, has announced that it has reached definitive agreements to sell its Pigments business to a consortium comprising Heubach Group and SK Capital Partners. Clariant’s Pigments business is a leading global provider of superior quality organic pigments, pigment preparations and dyes which are used in many applications such as the automotive industry, for industrial and architectural coatings as well as for the plastics industry.

Strategy

Clariant AG's key strategy in chemical mining is to be a leading provider of specialized and sustainable solutions for the mining industry. The company aims to leverage its deep expertise in chemistry and materials science to develop innovative mining chemicals and technologies that enhance mineral processing and extraction efficiency. Clariant places a strong emphasis on sustainability, committing to developing eco-friendly products and practices that reduce the environmental impact of mining operations. The company's strategy revolves around continuous research and development, investing in cutting-edge technologies to create efficient and responsible mining solutions. Clariant seeks to build strong and collaborative partnerships with mining companies, understanding their unique challenges, and delivering tailored solutions to optimize their processes. Through its dedication to innovation, sustainability, customer-centricity, and strategic collaborations, Clariant aims to be the preferred partner for the mining industry and contribute to responsible and sustainable mining practices worldwide.

Company Snapshot

$4,371.33M

Revenue

13,375

Employees

1995

Founded

Switzerland

Headquarters

SWOT Analysis

Strengths

Wide presence
High focus on R&D
Global presence
Diversified product offerings
Focus on research and development
Expansive market presence
Focused R&D of innovative and sustainable products, technology platforms, and enhanced functionality of existing products
High expertise in color masterbatches
Clariant has its own established suppliers
Strong position in the market
Significant presence across diverse regional markets
Focused R&D activities
Diverse product portfolio
Strong geographic presence
Wide geographical presence
Diversified product portfolio
Exposure to foreign exchange risks
Limited presence in emerging markets
Broad product portfolio
Strong presence in the global market
R&D expenditure of USD 169.93 million as of 2021
Focused research and development (R&D) activities
Improved operational performance
Specialized and Diverse Product Portfolio
Global Presence and Market Reach
Strong Focus on Innovation and R&D

Weaknesses

Declining profitability of multiple business units
New product launches
Dependence on a few licensed suppliers
Declining profitability
Divestment of intermediate business
Declining profitability in multiple business units
Limited product portfolio
Declining profitability affecting operational performance
No recent developments related to the market
No recent development relating to market
Decline in net sales
Diversified product portfolio
Exposure to foreign exchange risks
Limited presence in emerging markets
Net debt of USD 1,682.84 million as of 2021
Reliability on raw materials suppliers
Increase in liabilities
Dependency on Key Customers and Industries
Limited Brand Recognition in Some Markets

Opportunities

Setting industrial base in emerging regions
Growth of the global aerospace industry
Strategic joint ventures and collaborations
Business expansion by setting up new production plants
New product launches
Investment in the research & development for new product formulation
Innovation in halogen free flame retardants
Strategic initiatives such as new product development and business expansion
High demand in Asia-Pacific
Optimizing product portfolio to meet high-end applications
Increasing demand for sustainable products
Expansion in emerging markets
Acquisition of small companies
Strategic key initiatives such as expansion, joint ventures, and product launches etc
Positive outlook for the US chemical industry
Expansion initiatives
Growing Demand for Specialty Chemicals in Emerging Markets
Expansion in High-Growth Industries (e.g., Personal Care, Agriculture)

Threats

High price of raw materials
EPA & REACH regulations
Slow certification process
REACH regulations
Poor economic performance of some of the European countries
Stringent Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulation
Intense competition in the market
Volatile currency exchange rates
Stiff competition
Global supply chain disturbance
Changes in regulations
Intense competition
Economic downturns
Changing costs of raw materials
Fluctuating currency exchange rates
Risk variables to rise as the business expands globally
Intense Competition and Price Volatility
Regulatory and Compliance Challenges

Key Developments

Date	Approach	Development
September 2019	Product Launch	Clariant has come up with its latest WAXTREAT SubZero Pour Point Depressant (PPD), which will help the oil & gas companies, especially in the cold regions, to overcome challenges such as mitigation of wax deposition and transportation of waxy crude oils while reducing OPEX requirement during the cleaning of pipelines.
March 2019	Expansion	Clariant has established a new storage facility in Indonesia for its customers. The latest supply base at Bojonegoro in East Java is expected to enhance the supply chain for its drag-reducing agent (DRA) and pour point depressants (PPD) products, which are specifically in line with the specific requirements of the oil & gas industry.
June 2021	Divestment	Clariant, a specialty chemical company focused on sustainability and innovation, has announced that it has reached definitive agreements to sell its Pigments business to a consortium comprising Heubach Group and SK Capital Partners. The sale is valued at an Enterprise Value (EV) ranging between CHF 805 million to CHF 855 million, depending on an earn-out payment of CHF 50 million, which is contingent on Clariant's Pigments business's financial performance in 2021. The EV is based on a cash and debt-free basis and represents a multiple of 10.7 to 11.4 times the stand-alone adjusted 12-month EBITDA as of April 2021 (LTM).
October 2022	Product Launch	Clariant launches new additives to support plastics sustainable evolution. New developments give applications greater resilience to support longer use and reuse on the path to circularity. Plus, solve production challenges while achieving better efficiency and lower carbon footprint during compounding and processing (Hall 8a Booth J11).
December 2021	Expansion	Clariant has announced plans to build its inaugural production facility in China for the manufacturing of Exolit OP flame retardants. The facility will be located at Clariant's existing site in Daya Bay, Huizhou, Guangdong Province.
September 2021	Expansion	Clariant opened a new technical facility in Brazil exclusively dedicated to developing solutions for tailings management. Clariant’s new Competence Center for Tailings Treatment will develop mining chemicals and technologies to support the industry’s efforts from the heart of Brazil’s mining hub.

Product Offering

Clariant AG
- Scaletreat
- Coatings
- Masterbatches
- Natural
- Skin Care
- Oilfield Chemicals
- Natural Bisabolol For Skin Lightening
- Zeolites
- Global Dyes Market
- Global Textile Coatings
- Masterbatch Market
- Mining Chemicals

Financial Performance

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