MOSCOW (MRC) -- Clariant's Chief
Executive Hariolf Kottmann has doused speculation the Swiss specialty chemical
maker could soon unload its plastics and coatings business and use the proceeds
to buy a big, faster-growing target, said Reuters.
spun off the business, Clariant's largest with USD2.5 billion in annual sales,
into a separate subsidiary in 2015, fuelling speculation about a potential sale
despite assurances that nothing would happen for at least three to five
Kottmann told reporters on Thursday he was not considering a
transformative deal involving the unit, concentrating instead on smaller bolt-on
acquisitions similar to oil industry deals the company made in Texas last year
for a combined 366 million Swiss francs (USD365 million).
currently no project for divesting plastics and coatings and making a
multi-billion Swiss franc acquisition," Kottmann said at a Zurich analysts'
conference after Clariant reported full-year results.
With the chemicals
sector being transformed by megadeals including Monsanto's USD66 billion
purchase of Germany's Bayer and ChemChina's USD43 billion takeover of
Switzerland's Syngenta, Kottmann has often found himself defending Clariant's
In April, he said Clariant was a hunter, not prey. While
last September's Texas deals quenched Clariant's thirst for oil services assets,
Kottmann acknowledged scouting additional North American targets that could
strengthen the Care Chemicals business, which makes ingredients for hair care,
cosmetics and lotions.
China accounted for just 8% of Clariant's total
revenues of 5.85 billion francs in 2016, and Kottmann said that was
Consequently, Clariant has begun revamping its Chinese
business to focus on supplying more homegrown consumer goods producers, or
"local champions", which he said are wresting business from
The new structure foresees, among other things, Clariant
employees increasingly embedded at customers' operations for weeks or months, an
arrangement Kottmann said is unheard of in the West.
"If you don't have
this customer closeness in China, you will never sell a single kilogram of your
product," he said. "We strongly believe Clariant's future will be decided in
Asia, specifically China."
As MRC informed earlier,
Clariant announces an expanded partnership with Lintech International LLC
for the Plastics and Rubber Pigment Product lines in North
Clariant AG is a Swiss chemical company and a world leader in
the production of specialty chemicals for the textile, printing, mining and
metallurgical industries. It is engaged in processing crude oil products in
pigments, plastics and paints.