19 November 2009 13:29 [Source: ICIS news]
(Adds background on job cuts in paragraphs 5-7)
LONDON (ICIS news)--Clariant is planning more site closures and job cuts as part of its 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 ?xml:namespace>
Clariant CEO Hariolf Kottmann said in March that the company would be seeking further cost and headcount reductions, beyond the 1,350 positions it had cut in January.
The company expected to reduce its staff to under 18,000 worldwide by the end of 2009, compared with around 20,000 at the end of 2008.
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 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)
To discuss issues facing the chemical industry visit ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections