Annual Report 2010 - Clariantannual-report.clariant.com/uploads/tx_szmediacenter/Clariant_AR... · textile Chemicals A leading producer of dyes and chemicals for the textile industry

Prepared for Profitable Growth Annual Report 2010

Business Units

Clariant is a world leader in the field of specialty chemicals. Our products enhance many aspects of modern life.

32 Clariant Annual Report 2010

Headquartered in Muttenz near Basel, Switzerland, Clariant generated sales of CHF 7.120 billion in 2010. We are represented by more than 100 Group companies, employing approximately 16 200 people globally. Clariant has ten Business Units: Additives; Detergents & Intermediates; Emulsions; Industrial & Consumer Specialties; Leather Services; Masterbatches; Oil & Mining Services; Paper Specialties; Pigments; and Textile Chemicals.

Each BU has full responsibility for its operating results. The BUs control and manage the value chain, including: applications, purchasing, production, supply chain, marketing, and sales.

The six BUs that are reported separately have a revenue range of between CHF 326 million and CHF 1.526 billion. All assets have been allocated to the BUs according to the “major user principle” in the case of multipurpose sites.

The Clariant businesses bear worldwide responsibility for their activities. The businesses were established on the basis of shared chemical and technological features and the corresponding market segments. They are organized to meet the specific requirements and opportunities of their markets.

Business units

buSIneSS unItS oveRvIew

additives A leading provider of flame retardants, waxes and polymer additives for effects in plastics, coatings and other applications

Detergents & Intermediates

A leading supplier of key raw materials and intermedi-ates to the detergents, agro and pharmaceutical industries

emulsions A supplier of water-based emulsions/polymer disper-sions for paints, coatings, adhesives, construction, seal-ants and for the textile, leather and paper industries

Industrial & Con-sumer Specialties

A leading provider of specialty chemicals and applica-tion solutions for consumer care and industrial markets

Leather Services A leading supplier of chemicals and services to the leather industry

Masterbatches A leading provider of coloration and functionality of plastics, supplying the packaging, consumer goods, medical, textile and automotive sectors

oil & Mining Services

A leading provider of products and services to the oil, refinery and mining industries

paper Specialties A leading provider of optical brighteners, colorants and functional chemicals for paper and packaging applications

pigments A leading global provider of organic pigments and dyes for coatings, paints, printing, plastics and special applications

textile Chemicals A leading producer of dyes and chemicals for the textile industry including apparel, upholstery, fabrics and carpets

SaLeS by RegIon

Total: CHF 7 120 mn

Europe 42 %

MEA 8 %

North America 12 %

Latin America 17 %

Asia/Pacific 21 %

33

Additives

Our additives create value by improving efficiency, safety, protection, durability and appearance of products such as plastics, coatings and printing inks.

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3.2.


Key markets by sales

1. Waxes – plastics, coatings, inks, polish, technical textiles, adhesives, powder metal, road construction

2. Flame retardants – intumescent coatings, electronics and electrical appliance, automotive and transportation, military

3. Polymer additives – antioxidants, antistatic agents, light stabilizers, UV absorbers

Operating in three main areas – waxes, flame retardants and polymer additives – our Additives business serves a broad customer base.

We supply for example plastics and coatings manufacturers serving the construction, electronics and automotive industries with a comprehensive range of products. Decades of experience, with support through our global technical centers, make many of our products the industry standard for technical performance and quality.

Clariant is a leading supplier of a wide variety of specialty waxes based on leading technology. Our new Licocene® Performance Polymers are among the leaders in the Polyolefin wax world and offer our clients tailor-made solutions mainly in plastic and hotmelt adhesive applications. Our wide spectrum of Ceridust® offers micronized waxes mainly for use in surface protection in coating and ink applications. Our Licowax® Montan Wax range offers solutions as a processing aid in plastic applications as well as protecting surfaces in polish applications beside many other advantages.

We have a leading technology in non-halogenated flame retardants, which provides more environmentally compatible protection for buildings, electrical and electronical equipment as well as for textiles and materials used in transportation.

Additives in plastics and coatings provide the desired effects and quality to a given product and allow for maximum optimization in manufacturing processes. Stadium seats with our products, for example, have light fastness to keep the color bright, weather fastness to prevent the impact of rain or frost, as well as strength, flexibility and durability. Our polymer additives include antioxidants, processing/light stabilizers and antistatic agents.

For further information on Additives visitwww.additives.clariant.com

SaLeS by buSIneSS LIne

Waxes

Flame retardants

Polymer additives

Key bRanDS

waxes Including Licocene®, Licowax® and Ceridust®

Flame retardants Including Exolit®

polymer additives Including Hostavin®, Hostanox®, Hostastat® and Nylostab®

SaLeS by RegIon

EMEA* 55 %

North America 10 %

Latin America 5 %

Asia/Pacific 30 %

* Europe, Middle East and Africa

35Business units

Detergents & Intermediates

Our Detergents and Intermediates business is a leading supplier of key raw materials for laundry detergents and cleaning products.

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Key markets

1. Household & cleaning – includes cleaning agents, stain removers, laundry detergents, dishwasher detergents, liquid all-purpose cleaners, liquid metal/ceramic cleaners, sanitary cleaners

2. Agrochemicals, pharmaceuticals & other special application – includes ingredients for fungicides, herbicides, medicines, fragrances, flavors, dyestuffs

Modern detergent formulations must be individually adjusted for a wide range of requirements, which vary from region to region. These adjustments are needed to enable optimum results in terms of wash performance and cost-efficiency – and lower impact on the environment.

We work in close co-operation with the detergent industry, from multinational consumer brands to specialized producers of laundry and cleaning products, to research, develop and supply the solutions they require. Our detergent products can be found in household cleaning agents, stain removers, washing powders and dishwasher products.

We are a major supplier of chemical intermediates, especially for the manufacture of agrochemicals and pharmaceuticals.

Clariant is a global leader for the production of glyoxal and glyoxylic acid and their derivates, for metallocene and special catalysts, with over 40 years of experience of these complex molecules. These intermediates are used in agrochemical, pharmaceutical industries as well as in the wider chemical industry.

For further information on Detergents & Intermediates visitwww.detergents-intermediates.clariant.com

Key pRoDuCtS

Detergents TAED, SKS®6, Soil Release Polymer and Paraffin Sulphonate

Intermediates Glyoxal, Glyoxylic Acid, Oxalic Acid, Building Blocks

SaLeS by MaRKet

Household & Cleaning

Agrochemicals, Pharmaceuticals

& other specialist application

SaLeS by RegIon

EMEA* 88 %

North America 7 %

Asia/Pacific 5 %


37Business units

Emulsions

From paints, adhesives and construction to the textile, leather and paper industries, our emulsions can be found in a wide range of applications.

2.1.

4.3.


Our technical expertise and constant product development in emulsions help our customers to add value to their end-products and improve efficiency. Meanwhile, our knowledge of the sector industry trends helps them to differentiate themselves from competition.

With a global network of 14 production sites located exclusively in emerging markets, our Emulsions business is a major supplier of solutions in water-based emulsions/polymer dispersions for paints, coatings, adhesives, construction, and for the textile, leather and paper industries.

Our products improve the properties of decorative interior and exterior paints and varnishes. They are also found in all types of adhesives such as glues used in the wood, paper, textile and leather sectors. We also offer a wide range of emulsions for the refinishing and formulating of construction products.

Being water-based, our products are particularly suitable for the manufacture of products with less impact on the environment, avoiding the use of solvents.

More than 90 years of technical application experience makes us a trusted partner. Through tailored solutions we help customers to enhance their brand, reduce costs, improve efficiency and capture new markets.

For further information on Emulsions visitwww.emulsions.clariant.com

Key pRoDuCtS

Mowilith® used in paints, adhesives and construction

Mowicoll® for our ready-to-use adhesives lines

Appretan® and Printofix® binder used in textiles

Melio® used in leather

Cartaseal®, Cartacoat® and Cartacol® for paper

Major monomer systems include: Polyvinylacetate (PVA), Vinylacrylate (VAC), Vinyl Ester of Versatic Acid Copolymers and Terpolymers, Acrylates, Styrene-Acrylates

SaLeS by RegIon

EMEA* 27 %

North America 1 %

Latin America 56 %

Asia/Pacific 16 %


SaLeS by MaRKet

Paints

Construction

Adhesives

Textiles, Leather and Paper

Key markets

1. Paints – decorative interior and exterior, primers, varnishes, anticorrosion and industrial applications

2. Construction – concrete applications, roofing, tiling, sealants and primers

3. Adhesives – wood, paper, lamination, packaging and Pressure Sensitive Adhesives (PSA)

4. Textile, leather and paper – for a wide range of functional effects and coatings

39Business units

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Industrial & Consumer Specialties

The innovative products of our Industrial & Consumer Specialties BU are used in skin and hair care, household goods, to protect seeds or de-ice airplanes.


The business has a strong focus on ecologically sustainable solutions. These range from skin care formulations based on raw materials from renewable resources to aviation de-icing recycling systems.

For further information on Industrial & Consumer Specialties visit www.ics.clariant.com

We combine high quality products with formulation expertise across these diverse fields to deliver solutions with compelling cost-performance ratios and environmental benefits to customers.

Our Consumer Care business focuses on specialty ingredients for skin and hair care cosmetics and pharmaceutical applications. Our Industrial & Home Care business helps customers gain a competitive advantage with its range of cleaning solutions.

Our Industrial Application business combines technical excellence, application know-how and a strong product portfolio to serve a broad range of industries. In crop protection, we offer high-quality inerts and adjuvants. We are a partner of choice in areas such as industrial lubrication, construction and paints & coatings.

We have a global strength in aviation de-icers, heat transfer fluids, automotive fluids and special solvents.

Key markets

1. Paints, coatings & construction – additives for concrete & mortar, dispersing agents, defoamers, biocides, and emulsifiers for emulsion polymerization

2. Personal care – ingredients for skin & hair care cosmetics, wet wipes and pharmaceutical applications

3. Industrial & home care – ingredients for household and industrial cleaning solutions

4. Industrial lubricants – ingredients for hydraulic, metal working and other performance fluids

5. Engineering & aviation – including aircraft and runway de-icers, special solvents, and fluids for heat transfer, gas scrubbing and automotive

6. Crop protection – formulations for fungicides, herbicides and seed treatments

SaLeS by RegIon

EMEA* 57 %

North America 12 %

Latin America 19 %

Asia/Pacific 12 %


SaLeS by MaRKet

Consumer Care

Industrial Application

Others

Key pRoDuCtS

aristoflex® Rheology modifiers that simplify the manufacture of attractive Personal Care products

genamin® Ingredients for hair care formulations for excellent conditioning and brilliant shine

hostacerin®* Emulsifiers for all skin care formulations

emulsogen® and genapol®

High-quality emulsifiers for formulations in consumer care and industrial applications

Synergen® Efficient adjuvants for crop protection formulations

41Business units

Leather Services

We are a leading provider of chemicals, technical services and solutions over the entire value chain of leather production.

2.1.

4.3.


Clariant is one of the world's leading suppliers of leather chemicals for retanning, dyeing and finishing for clients in the leather industry. We focus on best services to fulfil our clients’ needs. Our Leather Services business offers chemical and technical solutions for the complete leather manufacturing process, from beamhouse to finishing, to customers in the shoe, automotive, furniture or garment and fur segments.

We provide high-quality leather processing chemicals and services with less impact on the environment and with a world-class knowledge of leather upgrading and chrome-free tanning solutions. Our technical expertise and colorants help customers to achieve consistently brilliant colors and natural tones, combined with performance every time.

With a worldwide presence, Leather Services has a global reach and is represented in all major tannery locations. We have an international team of dedicated leather specialists. Customized technical solutions are a key feature of Clariant’s Leather Services. In the automotive and shoe sectors, for example, our technical

expertise in areas such as performance leathers, combined with our strength in more environmentally friendly solutions, help our customers stay steps ahead of the competition.

The application development of all these chemicals takes place in our modern fully equipped laboratories worldwide. Our high-tech production plants are continuously adapted to the latest findings and developments to remain competitive in the world market.

Sustainability and process efficiency are the success factors in our industry. Therefore we have introduced a large number of innovations in recent years not only to meet new legal requirements for environmental safety which become more and more important, but also to become the industry benchmark for the upcoming years.

For further information on Leather Services visitwww.leather.clariant.com

Key markets 1. Shoe & accessories – including handbags, belts etc.

2. Automotive – leather seating and associated uses

3. Furniture – sofas, chairs and other furnishings

4. Garment & fur – coats, leatherware, fur

SaLeS by RegIon

EMEA* 40 %

North America 1 %

Latin America 19 %

Asia/Pacific 40 %


Key pRoDuCtS

granofin® Sustainable tanning solutions

tergotan® New generation of retan and soft polymers for a supple, natural and relaxed leather

Melioderm® To cover all dyeing needs

Melio® aquabase Value-adding masking of leather defects

aqualen® High performance, low VOC, NMP-free topcoats

SaLeS by MaRKet

Shoe & Accessories

Automotive

Furniture

Garment & Fur

43Business units

Masterbatches

Local focus, global standards – our Masterbatches business is a global leader in color, additive concentrates and innovative performance solutions for plastics.

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Key markets 1. Packaging – includes home & personal care, food & drink and

industrial

2. Consumer goods – includes appliances, electrical, sports, toys and construction

3. Medical – includes devices and pharmaceutical packaging

4. Textiles – includes carpets, non-woven, sports apparel

5. Automotive – includes interior and exterior parts, engine components

With a truly global scope, we can provide major advantages for today’s multinational companies, whose products may be designed in one region, manufactured in another, and marketed around the world.

A worldwide presence and local support make Masterbatches a preferred supplier for thermoplastic processors and brand owners, as well as for fiber manufacturers globally.

The business operates more than 50 full-service manufacturing facilities in 33 countries with a complete technical service offering for all products and applications. Proximity to customers means we can react quickly to local demand while at the same time we can deliver consistent quality and standards worldwide.

Our customers operate in a broad range of markets including packaging, consumer goods, medical, textile and automotive. Our leading technology enhances plastic everywhere – from medical devices, such as inhalers, to drinks bottles made from recycled materials and innovative car components.

The business is also supported by a dedicated network of ColorWorks® design centers to help customers increase their speed to market and differentiate brands. These centers provide brand managers, designers and marketing personnel with global color management services and design tools.

For further information on Masterbatches visitwww.clariant.masterbatches.com

SaLeS by RegIon

EMEA* 54 %

North America 21 %

Latin America 9 %

Asia/Pacific 16 %


SaLeS by MaRKet

Packaging

Consumer goods

Others

Textiles

Automotive

Key pRoDuCtS

Remafin® Masterbatches, liquids and specialty compounds for olefins

Renol® Masterbatches, liquids and specialty compounds for non-olefins

Cesa® Standard and specialty additive masterbatches

hydrocerol® Chemical foaming agents

Mevopur® Dedicated masterbatches and compounds for the medical and pharmaceutical sector

enigma® Special effects

omnicolor® Multipurpose masterbatches

45Business units

Oil & Mining Services

Solving local challenges with global capabilities and a deep reservoir of resources.

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3.


In today’s oil and mining industries, providing the right chemicals is simply not enough. Customers demand the best chemical technologies available, as well as services that are second-to-none. Likewise, local infrastructure and manufacturing with global support is now a requirement of service companies in order to deliver enhanced value through improved supply chain, cost reduction and the ability to custom design both operational and technological solutions.

Headquartered in Houston, Texas, Oil and Mining Services manages a growing network of service and research centers within all major oil, refinery and mining markets. Supported by our parent company, we have access to a deep reservoir of global resources on a scale unsurpassed in these industries.

Clariant Oil Services’ industry-leading experts develop and apply custom chemical technologies and services designed to deliver the highest value throughout the oil and gas life cycle. From well services to deepwater and onshore production optimization to pipeline, we deliver innovation and value while maintaining the highest standards for heath, safety and the environment.

Clariant Refinery Services provides fuel additives tailored to meet our customer’s unique and growing demands using in-house manufacturing, application and performance testing and on-site technical support capabilities. Globally renowned for middle distillates and fuel oils specialty additives, we also provide a full range of chemical solutions for biodiesel, refinery process, terminal and water treatment challenges.

Clariant Mining Services offers chemical solutions for a range of challenges across the mining value chain, maximizes the efficiency of mineral processing, improves the reliability of blasting and controls dust at the mine site. We also ensure the quality of fertilizers in all application media. Likewise, our industry-leading collectors and frothers are custom-formulated, ensuring product specification is achieved at the maximum possible recovery.

For further information on Oil & Mining Services visitwww.oil.clariant.com or www.mining.clariant.com

Key markets

1. Production chemicals and services – well services additives, production optimization technologies and services, pipeline chemicals and services and water management solutions.

2. Refinery additives – fuel additives, process chemicals and terminal treatment additives.

3. Mining chemicals and services – mineral processing, flotation, dust control, explosive emulsifiers and fertilizer additives.

47Business units

Paper Specialties

Our products improve the optical and functional properties of all kinds of paper and board via tailored solutions.

2.1.

4.3.


Clariant aims to provide first class knowledge and expertise in the management of whiteness, coloration, special coatings and strength for all kinds of paper, offering the most cost effective product choices and solutions to its customers.

Our innovative technologies deliver leading edge, environmentally friendly and sustainable solutions for the papermakers around the world.

Our key markets are printing & writing copy papers, coated paper and board, recycled papers, newsprint, packaging and specialized applications.

For further information on Paper Specialties visitwww.paper.clariant.com

SaLeS by RegIon

EMEA* 44 %

North America 21 %

Latin America 18 %

Asia/Pacific 17 %


SaLeS by MaRKet

Printing & Writing

Tissue & Toweling

Packaging & Board

Specialties/Non-wovens

Key markets

1. Printing & writing – photocopying paper, writing paper, magazines, newsprint

2. Tissue & toweling – toilet paper, nappies, napkins, tissues, hand towels

3. Packaging & board – cardboard, cartons, food packaging

4. Specialties/non-wovens – including medical masks and gowns, air filters

Key pRoDuCtS

Cartasol® M Best performance dyes for packaging

Flexonyl® Pigment preparations especially designed for paper applications

Leucophor® Optical brightening agents for innovative whiteness solutions

Cartaspers® pSM Keeping paper machines cleaner, faster, for longer

Cartabond® Crosslinkers for improved offset printing and converting

Cartafix® A broad range of dye fixation solutions

49Business units

Pigments

Based on extensive experience and expertise in color, our Pigments business helps to color the world.

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In a wide range of applications from printing to automotive paints, and from plastics to household detergents, Clariant brings significant experience in helping customers get the best from color.

Our Pigments business is a leading global provider of organic pigments, pigment preparations and specialty dyes used in coatings, printing, plastics, consumer products and other special applications. Our broad portfolio includes high-performance pigments and dyes to meet the exacting demands for automotive, industrial and architectural coatings, for the plastics industry, for special applications as well as colorants used in traditional printing, ink jet and laser printers.

Decades of experience and know-how means our products have a reputation for technical performance and quality, an offer which is supported through global technical service centers.

For paints and other coatings, our broad range of colorants includes pigments, pigment preparations, dyes and the innovative easily dispersible pigments.

For the plastics sector, our pigments, pigment preparations and dyes display excellent properties such as high fastness, color stability and non-warping. We offer a wide range of colorants designed to meet international safety regulations for use, for example, in toys or food packaging.

We also provide colorants for the full range of printing technology – from newsprint, magazines, food packaging and security printing to inkjet, other non-impact printing systems and electronic display technologies.

For further information on Pigments visitwww.pigments.clariant.com

Key markets

1. Coatings – automotive, industrial, decorative and architectural paints and coatings

2. Plastics and special applications – all plastic applicators including films, fibers and special applications, including detergent coloration, cosmetics and aluminum finishing

3. Printing – traditional & non-impact printing and electronic displays

SaLeS by appLICatIon

Coatings

Printing

Plastics and special application

SaLeS by RegIon

EMEA* 41 %

North America 13 %

Latin America 12 %

Asia/Pacific 34 %


Key pRoDuCtS

pigments Hostaperm®, Novoperm®, Hansa®, PV Fast®, Graphtol®

pigment preparations

Colanyl®, Hostatint®, Hostajet®, Permajet®, Hostaprint®, Hostasin®

Dyes Duasyn®, Savinyl®

other products Easily dispersible pigments from the Hostaperm® and Novoperm® ranges

51Business units

Textile Chemicals

From fiber to finish, Clariant’s chemical technology plays a key role throughout the entire textile supply chain.

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Key markets

1. Apparel – includes clothing of all types and fashions

2. Home textiles – such as towels, drapes, linens and furniture fabrics

3. Technical textiles – for applications including medical, construction, sports, and industrial

4. Carpet – includes indoor and outdoor floor coverings

5. Mobiltech – stands for fabrics in hard-wearing transport applications – planes, buses and trains

Our broad product offering, combined with outstanding chemical expertise and global reach, makes Clariant a leading supplier to brands and mills worldwide.

Using Clariant chemical solutions, our customers can meet the constantly changing specifications in the global textiles supply chain. Our customer segments include apparel & fashion, automotive/home textiles, and technical textiles.

We provide special chemicals for pre-treatment, dyeing, printing and finishing of textiles; optical brighteners and chemicals for functional treatment of technical textiles; and dyes such as dispersion, reactive, acid and sulfur dyes. Our process chemicals

improve carding, spinning, weaving and printing. And, our dyes and functional chemicals deliver color and special effects such as moisture management, easy to iron and UV protection.

Our color trends analysis and color matching technology help our customers to get products to market quicker. Meanwhile, our innovative technology and services, including nanotech effects, more environmentally friendly solutions, and concepts such as Advanced Denim, ensure they stay one step ahead of their competition.

For further information on Textiles visitwww.textiles.clariant.com

SaLeS by MaRKet

Apparel

Mobiltech

Technical Textiles

Carpet

Home Textiles

SaLeS by RegIon

EMEA* 38 %

North America 5 %

Latin America 21 %

Asia/Pacific 36 %


Key pRoDuCtS

advanced Denim The innovative and sustainable solution for the denim market

Drimaren® Reactive Dyes for Cellulosic coloration

Foron® Disperse dyes for highest wash and lightfastness requirements

nanoSphere®1 and coldblack®2

Innovative Finishes for Functional Effects

nuva® n The next generation of soil & stain release

nylosan® Acid Dyes for Polyamide Coloration

1 NanoSphere® is a registered trademark of Schoeller Technologies AG, Switzerland (patent protected technology).

2 coldblack® is a registered trademark of Schoeller Technologies AG, Switzerland (patent pending).

53Business units

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Annual Report 2010 - Clariantannual-report.clariant.com/uploads/tx_szmediacenter/Clariant_AR... · textile Chemicals A leading producer of dyes and chemicals for the textile industry