Cognis

Cognis is a global specialty chemicals company with leading positions in many of its markets worldwide. The company employs about 8,000 people, operates production or service centers in almost 30 countries, and sells its products to customers in more than 100 countries. In 2005, the company recorded total sales of 3.176 billion euros.

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Cognis has been an integrated part of Henkel, a leading German consumer products company, until 1999, when it became an operationally independent business unit. In November 2001, Cognis was bought from Henkel by private equity funds advised by Permira, GS Capital Partners and SV Life Sciences.

Product portfolio and markets Cognis manages its business through four strategic business units (SBUs) which are aligned with the core focus areas of its customers. The Care Chemicals SBU is a leading global producer of specialty chemicals and surfactants for manufacturers of hair, skin and body care products, as well as makers of household and industrial detergents and cleaners. The Nutrition & Health business unit develops and produces natural-source ingredients for the food and healthcare industries that cater to consumers’ desire for healthier and more convenient end-products. The Functional Products SBU provides integrated solutions to enhance performance and cost efficiency of manufacturing processes for industries such as coatings and inks, polymers, lubricants, agriculture and mining. The Process Chemicals business unit offers specialized chemical products and process expertise to customers in the leather, textile and fiber industries.

The company holds a 50-percent stake in the joint venture Cognis Oleochemicals, one of the world’s leading manufacturers of natural-source oleochemical basestocks, with a product portfolio including fatty acids, glycerin, triacetin, ozone acids, additives for the plastics industry as well as ester-based drilling fluids.

Strategy: orientation towards the end user/consumer Cognis is an extremely marketingoriented specialty chemicals company, and has a deep understanding of the end user/consumer. On the basis of market insights and demands, Cognis is offering its custom-ers the best-in-class solutions to be successful in their markets.

The marketing strategy of Cognis is focused on the growth trends wellness and sustainability. The products and solutions of the strategic business units Care Chemicals and Nutrition & Health focus on the global wellness market, with key issues such as health, beauty, anti-aging and convenience. It is estimated that the total volume of this market will grow to 1,000 billion US dollars by 2010. Functional Products and Process Chemicals are oriented towards the sustainability trend: the demand for products and processes which are ecologically sound while delivering the same level or even improved performance is primarily driven by society’s changing values, increased regulations and the need for greater efficiency.

Cognis has focused its efforts on providing its customers with integrated value-added products and concepts, rather than merely selling base chemical ingredients. Working in close relation-ship with key customers, Cognis is co-operating in the development and innovation phases of customers’ next products. Up to now this approach has been most apparent in the Care Chemicals and Nutrition & Health businesses, but it is increasingly being extended to other fields of business.

Cognis is aiming to strengthen its presence in high-growth regions, especially the Asia-Pacific and US markets. In 2005, the Asia-Pacific region accounted for 14% of Cognis’ sales, North America was representing 24%, and Central and South America 5%.

A brand new subdivision of Cognis called Pulcra is established in 2007.