Clariant announce next phase of restructure

15 October 2010

Clariant, a world leader in specialty chemicals, announced on October 15 the final phase of their Global Asset Network Optimization (GANO) project, which impacts eight sites worldwide. The measures are part of the company's overall 2009/2010 restructuring program and will lead to a reduction of up to 100 job positions worldwide. Implementation will be completed by 2013. The announcement has a minor impact on the recently formed Leather Services Business Unit.

Following a reorganisation of their Textile Chemicals Business Unit (BU), the BU headquarters will move from Reinach, Switzerland to Singapore. The move strategically locates the BU management at the centre of the world’s main textile markets. The Reinach-based application development laboratories for technical textiles and finishing will relocate to Muttenz, Switzerland. Muttenz will also remain the location for the BU's dedicated European sales and marketing operation.

Research & development staff currently based at Reinach will transfer to Frankfurt, the global hub for Group R&D.

Recognising the need to be close to key customers, the Paper Specialties BU HQ team will remain in Switzerland, moving from Reinach to Muttenz. Earlier this year the Reinach-based Leather Services BU staff also completed the move to Muttenz. As a consequence, Clariant will consolidate its activities in Switzerland at two locations - Muttenz and Pratteln (corporate centre), and exit Reinach by 2013.

In France, the relocation of the Clariant French headquarters from Nanterre to Lamotte has been proposed and is being discussed with workers’ representatives.

Clariant will also close production sites at McHenry (US), Delta (Canada) and Sefakoy (Turkey) in order to consolidate country production arrangements, thereby reducing costs and management complexity. In Guatemala City (Guatemala) Clariant will amalgamate three sites into a single production, warehousing and office facility. At Roha (India) and Shizuoka (Japan) individual production lines will be closed.

The implementation of these measures will lead to a reduction of up to 100 positions worldwide, of which approximately 70 are in Europe, including 27 in Switzerland. A further 60 Switzerland-based employees will be offered transfers to Germany and Singapore.

The GANO project was established in 2009 to address the structural weaknesses of Clariant's asset base and the long-term overcapacity issues of its production network. Including all transferring and receiving locations, approximately 30 sites are included in Clariant’s GANO project.

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