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MOSCOW (MRC) -- Clariant AG plans to
cut about 1,000 jobs as it slims down amid a series of divestments, the Swiss
speciality chemicals company said, as per Reuters.
"The
rightsizing programme foresees a reduction of approximately 1,000 positions in
service and regional structures. Approximately one-third of the reductions will
be included in the divestment transfers," it said, adding it would book a
provision of around 70 million Swiss francs (USD76.9 million) in the fourth
quarter for the programme.
The reductions will extend over two years and
will include departures attributable to natural fluctuation, Clariant said. A
previously announced cost-cutting programme aims to reduce around 600 positions
at continuing operations and generate 50 million Swiss francs in savings by the
end of 2021.
"By avoiding remnant cost and consequently reducing
complexity, putting an even stronger focus on innovation, sustainability and
operational excellence, we put our company’s high value speciality businesses in
a position to operate in an even more focused and agile manner. This will help
us deliver above-market growth, higher profitability and stronger cash
generation," Chairman Hariolf Kottmann said.
Clariant continues to
emphasise organic and inorganic growth to drive its portfolio upgrade, it
added.
As MRC reported before,
earlier this month, Clariant (Muttenz, Switzerland) announced the construction
of a new state-of-the-art catalyst production site in China. This project
represents a significant investment which further strengthens Clariant’s
position in China and enhances its ability to support its customers in the
country’s thriving petrochemicals industry.
The new facility will be
primarily responsible for producing the Catofin catalyst for propane
dehydrogenation, which is used in the production of olefins such as propylene.
Thanks to its excellent reliability and productivity, Catofin delivers superior
annual production output compared to alternative technologies, resulting in
increased overall profitability for propylene producers, says the company.
Construction at the Dushan Port Economic Development Zone in Jiaxing, Zhejiang
Province was scheduled to commence in Q3 2020, and Clariant expects to be at
full production capacity by 2022.
Propylene is the main feedstocks for
the production of polypropylene (PP).
According to MRC's ScanPlast report, PP
shipments to the Russian market reached 880,130 tonnes in the nine months of
2020 (calculated using the formula: production minus exports plus imports,
excluding producers' inventories as of 1 January, 2020). Supply increased
exclusively of PP random copolymer.
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. |
