Clariant plans site closures, job cuts as part of restructuring

19 November 2009 10:31  [Source: ICIS news]

LONDON (ICIS news)--Clariant plans to close sites and cut jobs as part of a restructuring programme to address overcapacities and reduce costs, the Switzerland-based specialty chemicals producer said on Thursday.

Some 570 jobs worldwide would be affected and consultation had begun with employee representatives and authorities, Clariant said.

The company's sites at Huningue in France, Pontypridd in the UK and at CIVAC in Cuernavaca, Mexico, along with parts of two plants at sites in Gendorf and Frankfurt, Germany, were nominated for closure.

Additionally, the company said it would evaluate options for its site at Onsan, South Korea.

The proposals follow the company's evaluation of its production network through its 'Global Asset Network Optimization' (GANO) project.

"As we have stated, 2009 and 2010 will be years of restructuring for Clariant. Project GANO is a key component of that process. Once completed, it will significantly improve the efficiency of our production network and increase Clariant's competitiveness," said CEO Hariolf Kottmann.

Full implementation of the initial Project GANO proposals, including the transfer of production to other parts of the Clariant network, was forecast to be completed between 2011 and 2013.

Restructuring costs would amount to approximately Swiss franc (Swfr) 150m ($147m/€99m), the vast majority of which would be booked in 2009 and 2010, Clariant said.

($1 = Swfr1.02, €1 = Swfr1.51)

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By: Franco Capaldo
+44 (0)20 8652 3214

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