Clariant focusing on profitable growth with stringent cost management
Clariant announced it will increase its focus on value creation by reducing the company's cost structure, cutting net working capital and strengthening its performance culture. At a total estimated cost of CHF 500 million, the initiatives will include a 10% reduction in the site network, cutting about 2,200 jobs and shrinking its number of products by at least 25%. The improvements shall enable the company to generate profitable long-term growth and to achieve sustained cost leadership in the specialty chemicals industry.
These initiatives are the result of a wide-ranging review over the past six months of Clariant's strategy, organizational effectiveness, portfolio components and operating practices. The review included a close look at the macro-economic outlook as well as the company from three distinct perspectives: Clariant as seen by its customers; Clariant versus its competitors, and Clariant as seen by its employees.
"We found that the company is headed in the right direction in most areas," Mr. Secher said. "What is required now is developing the company to achieve world-class performance. That means creating a strong culture of disciplined execution, reducing complexity where it is not required, and adopting stricter cost-cutting measures. A sharp focus on cash flow will allow us to implement the measures, boosting our performance substantially and creating sustained value for investors," he added.
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