November 14, 2006 Clariant

Clariant focusing on profitable growth with stringent cost management; Long-term topquartile performance targeted

E Objective: Above-average 10% Return on Invested Capital by end of 2009, up 25%
E Profitable growth at or above GDP, led by service-driven businesses
E Focus on fast-growing markets, particularly China and India
E Wide-ranging cost-cutting initiatives launched; emphasis on reducing complexity
E Global site network to be optimized by closing 10% of the sites
E Existing job positions to be reduced by 10% by 2009
E Performance management initiatives to increase leadership skills and entrepreneurial behavior

Clariant announced today it will increase its focus on value creation by reducing the company
fs cost structure, cutting net working capital and strengthening its performance culture. At a total estimated cost of CHF 500 million, the initiatives will include a 10% reduction in the site network, cutting about 2,200 jobs and shrinking its number of products by at least 25%. The improvements will enable the company to generate profitable long-term growth and to achieve sustained cost leadership in the specialty chemicals industry.
gOur clear goal is reaching a top-quartile position among our peers in value creation,h said Chief Executive Officer Jan Secher. gThe first step is delivering an above peer average Return on Invested Capital (ROIC) by the end of 2009, which will be achieved by significant improvements in performance management, taking out further costs and allowing for a differentiated approach to product-driven and service-driven businesses.h
The targeted growth in ROIC means a 25% increase from current levels.
These initiatives are the result of a wide-ranging review over the past six months of Clariant
fs strategy, organizational effectiveness, portfolio components and operating Clariant International Ltd Group Communications practices. The review included a close look at the macro-economic outlook as well as the company from three distinct perspectives: Clariant as seen by its customers; Clariant versus its competitors, and Clariant as seen by its employees.
gWe found that the company is headed in the right direction in most areas,h Mr. Secher said. gWhat is required now is developing the company to achieve world-class performance. That means creating a strong culture of disciplined execution, reducing complexity where it is not required, and adopting stricter cost-cutting measures. A sharp focus on cash flow will allow us to implement the measures, boosting our performance substantially and creating sustained value for investors,h he added.

Closer to customers
To reflect the wide diversity of Clariant
fs customer segments, the company will reshape its sales and distribution practices to be more customer-focused and more tailored to specific markets. gOur product-driven businesses, which represent 40% of our portfolio, need to be managed with an intense focus on efficiency, maintaining an extremely cost-competitive structure, while our service-driven businesses need to combine cost leadership with application technology and solutions know-how,h Mr. Secher said. As previously announced, Clariant will next year begin implementing PRIMA, a custom-designed pricing management system, which will further help the company extract value from its diverse products and services.
Clariant will build on its strengths in
colors, surfaces and performance chemicals. Over the next four years, the company will invest primarily in developing businesses that create the greatest additional value for customers by providing application and solution services. This more stringent allocation of resources will be a key component of the companyfs overall bottom-line growth rate over the same period.
The Group
fs four divisions - Textile, Leather & Paper Chemicals; Pigments & Additives; Masterbatches, and Functional Chemicals - are to be supported by increasingly centralized and efficient group functions, including sourcing, supply chain management and site services. Clariant began centralizing these areas last year and considerable potential is seen to reduce costs further by more effective purchasing and by pooling expertise.

Growth in Asia
Initiatives will be launched across the group to boost growth in fast-growing markets in Asia, particularly
in China and in India, where Clariant already has substantial operations.
The primary focus will be on creating additional capacity to meet expanding domestic demand, with exports to other regions of secondary importance. Asia expansion will be especially important in application-driven business in the Functional Chemicals Division.
Overall, sales growth for Clariant in Asia is anticipated to be double the overall growth in GDP in the region.
Furthermore, to reinforce long-term innovation, Clariant will build on its successful recent investments and its strategy of creating alliances with start-up companies and universities.
The company intends to invest a total of CHF 100 million over the four-year period
in early-stage gincubatorh projects, representing a 10% increase in its research and development spending. Already successful examples include the investments made earlier in 2006 in the U.S.-based firms Starfire and KiON, enhancing the portfolio of new technologies such as in nano materials and functional coatings.

Site closures and portfolio pruning
To become a world-class player in the industry, Clariant is committed to creating the leanest possible global site network. This will necessitate closing numerous sites over the next four years, with the main focus in Europe. It will cut costs further across the group and
reduce jobs by 10% by the end of 2009. Clariant currently employs approximately 22,000 people, down from approximately 28,000 three years ago.
The number of products Clariant sells will be reduced by at least 25%. The company has already been successful in reducing products in its textile dyes business, where the portfolio has been cut from approximately 3,000 products to about 500 products over the past year. This has significantly improved operational efficiency.
gThe approach is one of strategic simplicity and increasing versatility,h Mr. Secher explained. gThat means being highly intelligent about how we both reduce and manage complexity. This is being done so that it lowers our production, sales and delivery costs in a long-term, sustainable way. Our portfolio includes both sophisticated and relatively straightforward products, such as high performance red pigments for automobiles and standard red pigments for printing inks. Optimizing our processes to cut costs is a difficult but necessary challenge.h
Over the next four years, the company will spend approximately CHF 500 million on these operational improvements and cost-saving initiatives, including site network reductions.
About 85% of these initiatives require cash spending and will be financed by the operating cash flow before exceptionals of approximately CHF 600 to 800 million per year.

Strengthening leadership
To strengthen the organizational culture, the company recently launched the Clariant Academy, which will provide professional development with a focus on performance management skills and building knowledge-sharing platforms across the group.
In addition, the company is placing strong emphasis on developing and broadening its leadership base by intensifying its internal talent management efforts and recruiting outside talent when appropriate. Recent appointments include a new head of operations in Germany and a new head of Corporate Development.
gAlong with strengthening the organizational culture and developing talent, we are compensating our people in way that is closely linked to the companyfs results as well as to their individual achievements,h Mr. Secher said.

Excellent long-term prospects
Clariant is committed to building significant value for its long-term investors, maintaining solid credit ratings and retaining its dividend policy.
gThe result of this intense period ? focusing on the strengths in our portfolio, cutting costs, more effectively managing complexity and improving our execution abilities - will be a stronger company, a world-class performer, firmly in the top quartile of the specialty chemicals industry,h Mr. Secher said.

Clariant is a global leader in the field of specialty chemicals. Strong business relationships, commitment to outstanding service and wide-ranging application know-how make Clariant a preferred partner for its customers.
Clariant, which is represented on five continents with over 100 group companies, employs around 21,500 people. Headquartered in Muttenz near Basel, Switzerland, it generated sales of around CHF 8.2 billion in 2005.
fs businesses are organized in five divisions: Textile, Leather & Paper Chemicals, Pigments & Additives, Functional Chemicals, Life Science Chemicals and Masterbatches.
Clariant is committed to sustainable growth springing from its own innovative strength. Clariant
fs innovative products play a key role in its customersf manufacturing and treatment processes or else add value to their end products. The companyfs success is based on the know-how of its people and their ability to identify new customer needs at an early stage and to work together with customers to develop innovative, efficient solutions.

Platts 2006/11/29

Clariant inaugurates 20 kt/year polymer site in Germany

Switzerland's Clariant has inaugurated a new
20,000 mt/year low-molecular polyolefins production facility for its Licocene brand of polymers, near its pigments and additives division at Frankfurt-Hochst, Germany. ^ZG}pItBbNX|}[
According to the group, the new metallocene technology makes it possible to 'selectively tune' key properties of the polyolefin wax, such as hardness, melting point, transparency and viscosity, so that it is possible achieve a wide variety of combinations.
This brand of high-performance polymers is used, amongst other things, as dispersion agents in the production of master batches, in adhesives and sealing compounds and also in natural and glass fiber-reinforced composites.

2007/5/8 Clariant

Clariant sells Custom Manufacturing Business to International Chemical Investors Group

Clariant today announced the sale of its Custom Manufacturing Business to International Chemical Investors Group (ICIG) for an undisclosed transaction value. The sale is the latest step in Clariant
fs strategy to focus on its core competencies in colors, surfaces and performance chemicals.
fs Customer Manufacturing Business supplies a wide range of intermediates and actives ingredients for the agrochemicals, pharmaceuticals and polymers industries. At closing, the new autonomous entity will be one of the worldfs leading suppliers to the agrochemicals industry with production sites in Germany and the US. In 2006, the Custom
Manufacturing Business had sales of around CHF 217 million and about 490 employees.
The sales process was initiated only six months ago as a result of the review of the strategic options for the former underperforming Life Science Chemicals Division.
Clariant expects to record a book loss of approximately CHF 70 million. The transaction is expected to close by mid-year after fulfilment of local transfer requirements such as approval of all relevant authorities. All assets and personnel will be transferred to the buyer.
Jan Secher, Clariant
fs Chief Executive Officer, said: gAs an independent entity supported by a committed investor, the Custom Manufacturing Business has an excellent opportunity to improve its performance in the future. It is a major step in focusing our business portfolio on colours, surfaces and performance chemicals.h
"The Clariant agrochemicals businesses are an important building block complementing our present portfolio of fine chemical custom manufacturing assets. With this acquisition WeylChem will become an important player in the non-GMP custom manufacturing sector with revenues of approximately 200 million Euro. It is our plan to realize the synergies with our other fine chemicals manufacturing activities and to expand our services to our customers of major chemical companies around the worldh says Dr. Achim Riemann, Managing Director of ICIG.
"The Custom Manufacturing Business substantially broadens ICIG
fs fine chemicals activities and we are looking forward to actively supporting both the German and the U.S. businesses in their organic growth as well as through further additional complementary acquisitions" says Patrick Schnitzer, Managing Director of ICIG.

About International Chemical Investors
International Chemical Investors is an investment group focusing on mid-sized chemical businesses, preferably subsidiaries of large corporations, which are considered non-core, with leading positions in niche markets, operating in competitive environments. Including the newly acquired Clariant businesses, ICIG will operate 14 production facilities located in Germany, the United States, France, Belgium, Ireland and Poland with total sales of close to Euro 500 million and more than 2,500 employees.

November 12, 2007 Clariant

Clariant Masterbatches Expands in Latin America Through Acquisitions and Investments

Clariant Masterbatches has received regulatory approval to purchase MasterAndino S.A., an important manufacturer in Colombia. The transaction, which was finalized at the end of October, will strengthen Clariantfs ability to offer superior value to its customers throughout Colombia. Clariant will acquire the product inventory, equipment and business portfolio of MasterAndino and will continue manufacturing at the existing MasterAndino plant until early in 2008, when both operations will be merged in a newly constructed Clariant Masterbatches facility in Cota, on the outskirts of Bogota.
gThis is one of several major projects we are undertaking in Latin America,h said Dominik von Bertrab, Head of Clariant Masterbatches. gAlong with investments in Guatemala and Chile, the expansion in Colombia demonstrates our commitment to be the leading supplier of color and additive masterbatches not only in the Andean market, but also across all of Latin America. Clariant has structured its Latin American operations so that we can be a preferred partner for customers in the region, increasing our level of service and leveraging our presence by combining global reach with local supply. Overall, Clariant Masterbatchesf business in Latin America significantly outpaced the market in 2006 and is on track to do the same again this year.h
MasterAndino was founded in 1995 by Rafael Botero Salazar, and it has grown to become one of the largest color masterbatches suppliers in Colombia. The company produces color and additive masterbatches for polyolefins, polystyrene, ABS and PET. gRafael Botero is an icon in the masterbatch business of Colombia,h notes Sven Schultheis, Clariant Masterbatches Head of Regional Business Unit Latin America. gHe is knowledgeable and trustworthy and, like Clariant, has always believed in maintaining a strong customer focus. Our companies have complementary product lines and now, with the economies of scale in a highly productive new site, we see excellent potential to provide value to our customers.h
Earlier this year, Clariant purchased PlastiColor S.A., a producer of color masterbatches in Guatemala City, Guatemala. The facility manufactures custom colors and provides rapid response time and accelerated delivery required by the local market in Central America.
In Chile, a new green-field plant opened in December 2006 in Maipu, near Santiago. Chile is a very attractive place for business, especially for companies in the high-end packaging, consumer goods and fiber markets. The new Masterbatches plant is focused mainly on producing color and special-effect masterbatches for polyolefins used in these applications.
Meanwhile in Brazil, Clariant Masterbatches has expanded capacity at its site in Suzano, just east of the city of Sao Paulo. Three new masterbatch lines are being installed along with an automated material handling system. Advanced mixing technology is being employed to achieve even dispersion of higher concentrations of color and additives within the carrier resin matrix. In ColorWorks? Sao Paulo, one of seven centers on the ColorWorks global design services network, production-scale blowmolding and injection-molding equipment has been installed to create a fully equipped packaging lab with the ability to quickly produce prototype bottles and caps. A three-dimensional color imaging system is also available to create virtual models of new products using different materials, colors, effects, shapes, and textures. This technology provides a quick and easy way to help customers evaluate color, gloss and texture in plastic components without making costly prototypes.
Clariant Masterbatches products are marketed under six global brand names: REMAFINR masterbatches for olefins; RENOLR masterbatches for engineering resins, styrenics and PVC; CESAR additive masterbatches; HYDROCEROLR chemical foaming and nucleating agents; OMNICOLORR universal color masterbatches; and ENIGMA special effects. These brand names and Colorworks? are all registered trademarks or trademarks of Clariant.

Sep 21, 2008 Reuters

Clariant to be broken up after new CEO named-paper

Swiss speciality chemicals company Clariant could be broken up after it named a new chief executive earlier this month, a newspaper reported on Sunday.

Citing unnamed sources, the Sonntag newspaper said the struggling company planned to sell
its pigments and additives division to a competitor and its textile, leather and paper chemicals unit to a private equity company.

That would leave the company with
just its functional chemicals and masterbatches divisions, which make up just half its turnover, the newspaper said. Clariant was not immediately available to comment on the article.

Earlier this month, Clariant said Hariolf Kottmann would take over as new CEO in October from Jan Secher, who only joined the company in 2006 and who Sonntag noted as recently as July had said he wanted to make acquisitions

Sonntag said Kottmann was behind the break-up plan as well as board president Juerg Witmer, although it said the company might end up having to put up the whole business for sale.

Shares in Clariant surged after Germany's BASF launched a 2.1 billion euro bid earlier this month for its Swiss rival Ciba, whose president Armin Meyer said the consolidation in the sector has only just begun.