Clariant now aiming for growth
08/06/2011
At a media event in London on June 8, chief executive, Hariolf Kottmann, explained that the company’s strategy is based on four pillars–to make selective acquisitions, to manage its existing portfolio well, to achieve excellence in research, development and innovation, and to pursue growth in the world’s most dynamic emerging markets (China, India and Latin America). This is supported by a company-wide continuous improvement initiative.
He said that 2011 signalled a switch from restructuring to growth. Restructuring began in 2008 when the existing management team took over. Mr Kottmann said at the London event that a decision the previous management team made in 2000 to acquire UK-based British Tar Products (BTP) proved to be “a real disaster” and that Clariant had spent the best part of the next eight years struggling to generate enough cash to survive. “We targeted all kinds of costs during the restructuring,” he said. This included reducing the number of Clariant employees by around 20%, and the closure of a series of production sites across the company.
Clariant completed an important acquisition in April, that of Munich-based Süd-Chemie. When it fully integrates Süd-Chemie, Clariant will have 12 business units, including leather. Leather accounts for 4% of the company’s business at the moment, but Mr Kottmann was very complimentary of the way its plant at Kanchipuram in south-east India was performing. He called it “an outstanding site”.
“Clariant is only at the beginning of its journey now,” the chief executive said.
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