Clariant ditch the past and prepare for the future - paper chemicals to be slplit off as a stand-alone unit

With its lack of strategic direction and slow decision-making, Clariant has found itself in a position where it needs now to make some decisive moves.  The complexity of its paper, textile and leather division (TLP) and their non-transparent interrelationships have made it hard for Clariant to off-load any of these businesses as a separate entity.  That said, it is hard to see how anyone would want to pay much for these heavily European-based (Germany and Switzerland) businesses - the share price has continued to free-fall, reflecting the value of Clariant.

In one of the changes, described in management speak as, 'enabling each business to be managed as a stand alone unit, providing the operational and strategic flexibility required to improve profitability',  Clariant is continuing the process of trying to separate the textile, paper and leather businesses from each other in the hope that any of them would be more attractive to a potential buyer.  Too little, too late is the view of many in the industry.

Simultaneously, Hariolf Kottmann, the CEO of Clariant, has retired- off Peter Brandenberg, who was seen as a temporary, Swiss establishment head of the TLP Division as the slow process of deciding on future options for change were made.  Brandenberg spent 38 years at Clariant!

In Brandenberg's place, Kottmann has unsurprisingly brought in an ex-Hoechst colleague, Mathias Lutgendorf as head of the TLP Division and a member of Clariant's executive committee. He will lead the continuing process of separating the paper, textile and leather businesses from each other.

Interestingly, Lutgendorf moves to Clariant from the private equity owned DyStar, a textile dyes and chemical producer, so there could be some thoughts of consolidation on the horizon.