Well poised to meet global market needs
November 01, 2011, was a red letter day for Clariant, the world’s largest speciality chemical manufacturer. On this day, the company inaugurated its South-East Asia and Pacific headquarters and relocated its textile chemicals business unit headquarters, both of which will be based out of Singapore. Clariant also relocated its Global Textile Application Technology lab to Singapore, and finally, on the same day, opened a new ethoxylation plant and application laboratory in Guangdong, China.
The inaugural event was attended by the top officials of Clariant, including Dr. Hariolf Kottmann, CEO, Mr. Mathias Lütgendorf, Member of the Executive Committee responsible for the Industrial & Consumer Specialties, Textile Chemicals, Oil & Mining Services, Leather Services Business Units and for the Functions Group Procurement and Supply Chain Management, Mr. Thomas Winkler, Head of Textile Chemicals Business Unit, and Mr. Walter Mohr, Region Head of South East Asia & Pacific and Country President, Singapore.
“Expanding Clariant’s business in the fast-growing Asian region is an important pillar in our profitable growth strategy and a strong commitment to serving our customers and markets,” commented CEO Hariolf Kottmann.
Clariant’s new regional hub is the first headquarters to be shared by Clariant and the recently acquired Süd-Chemie. The 200 employees at the Singapore location will support customers in the South-East Asia and Pacific regions. In the last five years, Clariant’s sales in the Asia Pacific region have grown from 17 per cent to around 22 per cent. At the same time, investments in the region reached over CHF 200 million in China alone.
Clariant’s acquisition of Süd-Chemie will add significantly to this growth. Süd-Chemie achieved 31.5 per cent of its sales in Asia and the Middle East in 2010, estimated at EUR 385 million. A third of its employees are located in this region.
Clariant has set an ambitious sales target of over CHF 10bn ($11.96 billion) by 2015. According to the company, the combination of research and development, innovation, elimination of geographical and technological gaps, as well as the completion of mergers and acquisition, will help the company achieve its targets.
In 2010, Clariant reported a turnover in excess of CHF 7 billion. The company is divided into 12 business units: Additives, Catalysis & Energy, Detergents & Intermediates, Emulsions, Functional Materials, Industrial & Consumer Specialties; Leather Services; Masterbatches, Oil & Mining Services, Paper Specialties, Pigments and Textile Chemicals.
Headquartered in Muttenz near Basel, the group owns over 100 companies worldwide and employs about 16,200 employees as of December 31, 2010.
Clariant is a leading manufacturer of a comprehensive range of textile chemicals and dyes. With more than 60 per cent of global textile production based in the Asia Pacific region, it is already generating 43 per cent of its textile chemical sales in Asia.
Supporting regional growth
As part of the relocation to the new headquarters, the senior Textile Chemicals BU management team is now based in Singapore to strengthen customer relationship, focus on strategic priorities and respond much better to structural changes in the global textile industry. While Asian countries such as China have emerged as important markets for textiles, Europe will clearly remain a key location for Clariant to facilitate new innovations in high-value markets, such as functional finishing and technical textiles.
“The reorganization of the Textile Chemicals BU has enabled us to establish a stronger presence in strategically important markets in Asia and at the same time implement a new business structure to cater to the higher service level expectations of our European and American customers,” said Thomas Winkler, Head of Clariant’s Textile Chemicals BU. “Europe especially remains a significant market for Clariant and a key location for innovation in technical textiles, which will continue to be a major driver of future growth.”
In 2010 the textile business generated sales of CHF 821 million. With more than 60 per cent of global textile production based in the Asia Pacific region, Clariant already generates 43 per cent of its textile chemicals sales in Asia. The company aims to reach sales of 1 billion Swiss francs in China and 800 million francs in India by 2016-2017, Mr. Kottmann said.
The relocation of its global application development capabilities to the new Singapore textile chemicals lab facility is another major step Clariant has taken to further boost its commitment to develop innovative, effective solutions for its customers.
The global application technology facility in Singapore will play an important role in advancing new application technologies for Clariant’s global range of textile chemical products. The facility houses the latest laboratory equipment for product and application development for the entire textile value chain, particularly in dyeing and printing. The Singapore lab also serves as the center where all final-review testing for new global products will be carried out before they are officially certified for global release.
“The relocation of our Textile Chemicals BU to Singapore will better position Clariant to respond to global market conditions, and Singapore offers the ideal location to serve the world’s largest textile markets such as Bangladesh, China, India, and South East Asia,” explains Winkler. “The Singapore lab will play an integral role in exploring new applications for both our new and existing products, as well as developing innovative application processes for textile chemicals.”
Sustainable innovations
To meet market demands and foster future technologies, Clariant’s Textile Chemicals BU has developed new products that address environmental concerns and help make textile processes more sustainable. The new products include the Pekoflam fire retardant (FR) system that offers breakthrough performance in durable FR finishes, enhancing durability while keeping in line with global sustainability and green health standards. Its non-halogenated finishes, formaldehyde and amine emissions below detectable limits meet the sustainability needs and high performance requirements of the textile industry.
Clariant’s Foam Eco Care finishing sets a new benchmark in wrinkle-free finishes with a new foam-based application improving fabric quality, cutting down production processes and generating benefits in water, energy and time savings.
Quiospheres 1 is a new high-tech cosmetic micro encapsulation for textile applications with proven benefits, providing a feeling of well-being and wellness.
These latest sustainable product lines, coupled with the advanced application development capabilities established in Singapore, are expected to help create more business opportunities in the Asia Pacific region.
“Clariant has worked closely with many customers around the world to develop new applications to cater to the demands of future market growth,” Winkler said. “Our innovation heritage and strong commitment to sustainability further confirm Clariant’s status as one of the leading chemicals suppliers to textile mills and manufacturers”.
The successful relocation of the BU headquarters and the subsequent realignment of the global structure would enable the company to optimize support to its global customers while providing them with the latest and most innovative solutions, from fiber to finish, for all textile market segments.