Clariant’s future is in emerging markets: CEO
Jonathan Lopez
19-Feb-2014
ZURICH
(ICIS)–Clariant’s future will be in Asia and emerging
markets, despite ongoing challenges in the business
environment on the back of volatile currency markets,
CEO Hariolf Kottmann said on Wednesday.
“We expect low to mid digit sales in emerging markets in 2014
… Our headcount will increase in China, Indonesia and India,
as well as in North America. We have a strong position in
Latin America, especially in Brazil, compared to other
specialty chemical companies,” Kottmann said.
He added emerging markets economies have seen a very volatile
environment in the last quarter of 2014, and in Brazil’s case
the strong growth rates have been “digested” when translated
into Swiss francs, due to the depreciation of the Brazilian
real.
“We have seen strong demand in oil services [in Brazil]. Our
ICS [industrial and consumer specialties] business is looking
at Brazil and Latin America because it is a growing
interesting market, like India. [In emerging markets] you
can’t miss the both, you are either in or you are out,”
Kottmann said.
Clariant’s CEO said the battery materials business “is not
going well” and the segment’s performance did not
improve to the level hoped for during 2013.
“That business didn’t develop a year ago as expected. I don’t
think the reason [to outperform] is based in the technology,
in principle. Our major customer is a Chinese battery
producer, [which has experienced] home-made difficulties, and
the demand from his point of view grew much slower than
planned,” Kottmann said.
Clariant’s CEO added that is too early to think about
divestments in that segment, as there are many other areas in
the company with room for growth.
“If we can’t improve that business up to a level which is
necessary to stay in our portfolio, it would be logic to
consider divestment,” he added.
Clariant’s CEO also said he opposes the result which the
referendum held in Switzerland on February to limit the work
permits for other EU nationals – breaking agreements the
country had signed with the EU – is the wrong decision,
but it is a democratic one.
“I am a foreign myself in this country. I am more European
than German. It was not the right decision, that’s my private
opinion. I am convinced Switzerland needs the EU and the EU
needs Switzerland,” Kottmann added.
He added the process of translating the popular vote into law
will take at least three or four years, and therefore it was
too early to draw conclusions and how the new law could
affect Clariant.
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