Switzerland-based global specialty chemicals provider Clariant has announced it will restructure
its businesses in response to the leather and textile market downturn in the fourth quarter 2008,
combined with the uncertainty of market conditions for 2009.
Clariant already has adjusted plans for businesses experiencing a decreased demand by slowing
or shutting down production, releasing temporary employees, and reducing overtime, among other
actions. Further restructuring moves include downsizing and reducing expenditures, particularly in
its selling, general and administrative (SG&A) expenses.
Clariant plans to eliminate 1,000 jobs, mainly in the SG&A area, in addition to the
approximately 2,200-employee reduction announced in 2006 that it is still carrying out. The company
is focusing on cash generation in 2009, and in line with this, the Board of Directors will propose
to Clariant’s 14th Assembly, to be held April 2, 2009, that dividends, grants and other shareholder
payouts for 2008 be cancelled.
The company announced global sales in 2008 totaled 8.1 billion Swiss francs – a 1-percent
growth in local currency, but a 5-percent decline in Swiss francs. The downturn in the leather and
textile markets led to an impairment of approximately 180 million Swiss francs in the fourth
January 27, 2009