Plastics & Coatings

The Business Area Plastics & Coatings, which includes the businesses Additives, Pigments and Masterbatches, is comprised of sector-leading businesses and a strong link to global gross domestic product growth.

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Plastics & Coatings is Clariant’s most cyclical Business Area with customers ranging from packaging, consumer goods, medical, textile to transportation and agricultural multinationals, as well as local companies.

Masterbatches

As a global leader in color and additive concentrates and performance solutions for plastics, the business is a global trendsetter with strong local partnerships and, therefore, a preferred supplier.

Masterbatches is organized in six separate market segments including Packaging, Consumer Goods, Medical Pharma, Fibre, Automotive and Agriculture, each of which focuses on the customer’s individual needs. The products range from plastic resins for applications in polyolefin polymers, high-performance engineering thermoplastics, to medical-grade Masterbatches, as well as packaging solutions for the health-care industry.

With more than 50 full-service manufacturing facilities, Masterbatches offers an unmatched global footprint, which forms a clear competitive advantage.

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Additives

The Additives business is a major supplier of flame retardants, polymer additives and waxes for functional effects in plastics, coatings, inks and other special applications.

Additive’s patented non-halogenated flame retardants provide environmentally compatible protection for engineering thermoplastics, polyamides and polyesters. It offers a sustainable alternative over brominated flame retardants to support Original Equipment Manufacturer’s (OEM’s) claim on their environmentally friendly products. Main applications include smart phones, tablets, connectors and circuit breakers as well as automotives.

The Polymer Additives segment provides innovative solutions for the agriculture, automotive and transportation, electrical and electronics, industrial building and construction, packaging, textile and fibers markets. The products range from antioxidants, processing and light stabilizers, as well as acid scavengers, which enable protection of plastics and coatings during manufacturing, and antistatics which confer antistatic effects.

Clariant’s Specialty Waxes and Performance Polymers are mainly used as process- and surface additives for plastic, coating, ink, adhesive and polish applications, but are also increasingly directly used as hot melt adhesives in the area of technical textiles, carpets and for artificial turf.

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Pigments

The Pigments business is a leading global provider of organic pigments, pigment preparations and specialty dyes. This business focuses on five main market segments including coatings, paints, printing, plastics, consumer products and other special applications.

The broad business portfolio includes high-performance pigments and dyes to meet the exacting demands for automotive, industrial and architectural coatings, for the plastics industry, special applications, as well as colorants used in traditional printing and inkjet and laser printers. The business also manufactures and supplies tinting systems used at the point-of-sale.

The Pigments business proactively ensures its products meet international standards and regulations and strives to always be at the forefront of environmental, health and safety performance.

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Strategic Objectives - Masterbatches

Masterbatches defines its strategy with four objectives. These objectives include growth via regional initiatives, a strong focus on the most attractive market segments, the implementation of an industry-leading operational model and building the »Next Level of Innovation.« The goal is to create products and services by anticipating and meeting customer needs.

Under the focus topic »Next Level of Innovation,« the business is committed to grow and expand beyond its current portfolio and generate cutting-edge products, processes and services that ensure the sustainability of the Masterbatches innovation pipeline. Being in a mature industry, the business is focusing its efforts on extending the infrastructure through upgrades, capacity expansions or investment in new sites, implementing efforts to improve the efficiency of internal operations, focusing on innovative products and services in markets where it can deliver maximum value.

Strategic Objectives - Additives

Additives has developed a five-step approach to enable profitable growth. It wants to further expand its emerging market presence with key investments. Further the focus remains on key market segments where the business can address customer needs with specific value propositions. Additives aims to offer innovative and sustainable products and solutions, always focusing on functionality. The cost base is reduced by eliminating non-value adding steps, offering »easy-to-handle« and »direct-use« solutions to customers, such as converters. Finally, the business aims to leverage its value chain by liaising with key technology providers and creating a pull-effect by working more closely with OEMs (original equipment manufacturers).

Strategic Objectives - Pigments

The objective of Pigments is to strengthen its position as an innovative global provider of color solutions by improving its cost position and by implementing Clariant Excellence measures and investing in key growth markets. Furthermore, Pigments works to continuously improve its strategic position in emerging markets through bolt-on acquisitions.

In order to stay ahead of the curve, Pigments will leverage in-house innovation to develop new products for existing and upcoming applications.

strategic focus on profitable growth
Key financial Figures

14.6 %

Current EBITDA margin (before exceptional items)



Steered for absolute
EBITDA and
cash flow generation

  • Expansion of presence in the emerging markets
  • Development of innovative products with special consideration of the heightened ecological awareness, as well as the increased legal require­ ments and regulations identified for plastics, inks, and coatings
  • Continuous improvement of cost efficiency
  • Specific initiatives with dynamic growth product groups, for example, with flame retardants

2 525

+ 4 %
Sales in million CHF
in local currencies

368
EBITDA* in million CHF
* Before exceptional items


market position


No.
1
Masterbatches
No.
1
Decorative paints
No.
2 
Industrial coatings


Key Drivers for Plastics & Coatings

Badges_Key_Drivers_0008_Urbanization
Emerging Market Growth and Continued Urbanization
  • Growing use of electronics requiring flame retardants
  • Increased environmental consciousness
Badges_Key_Drivers_0006_Growing_middle_class___Disposable_income
Growing Middle-Class / Disposable Income
  • Rising consumption of plastics in line with increased wealth
  • Increased desire for personalization in consumer electronics and decorative coatings
Badges_Key_Drivers_0005_Sustainability
Sustainability
  • Shift to environmentally compatible products for plastics, coatings and inks
Badges_Key_Drivers_0000_REgulatory
Legislative / Regulatory
  • Increasing use of plastics with tailor-made properties in applications such as mobile phones, cars and construction
  • Move towards more stringent regulation in emerging markets

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Disclaimer:
This information corresponds to the present state of our knowledge and is intended as a general description of our products and their possible applications. Clariant makes no warranties, express or implied, as to the information’s accuracy, adequacy, sufficiency or freedom from defect and assumes no liability in connection with any use of this information. Any user of this product is responsible for determining the suitability of Clariant’s products for its particular application. 


* Nothing included in this information waives any of Clariant’s General Terms and Conditions of Sale, which control unless it agrees otherwise in writing. Any existing intellectual/industrial property rights must be observed. Due to possible changes in our products and applicable national and international regulations and laws, the status of our products could change. Material Safety Data Sheets providing safety precautions, that should be observed when handling or storing Clariant products, are available upon request and are provided in compliance with applicable law. You should obtain and review the applicable Material Safety Data Sheet information before handling any of these products. For additional information, please contact Clariant.

* For sales to customers located within the United States and Canada the following applies in addition: No express or implied warranty is made of the merchantability, suitability, fitness for a particular purpose or otherwise of any product or service.

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