The Business Area Natural Resources, consisting of the businesses Oil & Mining Services and Functional Minerals, is characterized by high growth, low cyclicality and a strong orientation towards promising industry trends.
Fundamental trends driving growth for the segments in this Business Area are the increasing global consumption of oil, metals and food-driven by growth in many industries.
Oil & Mining Services
Headquartered in Houston, Texas, USA, Oil & Mining Services is a leading provider of products and services to the oil, mining and refinery industries, helping the aforementioned industries in the efficiency and improvement of production, decrease of operational risk and customer cost reduction.
Oil Services is a global leader in the provision of specialty products and services to the oil and gas industry for exploration, production and pipeline transport activities. Clariant Mining Services is a leading global supplier of chemicals and integrated services to the mining and fertilizer industries. The primary goal and activity is to increase yield of ore production, provide special additives for reliable explosive emulsions at the blasting site and flotation technologies. Clariant Refinery Services is a leading independent supplier of customized chemicals and service solutions addressing all challenges of the entire processing and blending chain, all the way to the gas pump.
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Functional Minerals is the leading provider of specialty products and solutions based on bentonite and synthetic minerals to enhance products and processes in various industries. The business is headquartered in Munich, Germany, and operates on a worldwide scale.
Key markets served by the business include edibile oil refining (bleaching earth), metal casting (foundry additives), civil engineering and construction (drilling additives), plastic processing (heat stabilizers), feed additive (mycotoxin adsorbers), and export packaging (desiccants) industries.
Functional Minerals has fully integrated the complete value chain from exploration, mining, and processing and refinement of natural bentonite to tailored industry and customer-specific solutions.
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Strategic Objectives - Oil & Mining Services
Oil & Mining Services separates the strategic objectives for its three businesses. Oil Services’ objectives include the focus and development of key technologies in the field of deepwater drilling, enhanced oil recovery (EOR), and unconventional production, namely shale oil.
Mining Services demonstrates its leadership position in flotation chemistry by leveraging the strengths in key ores into regions where the business is under-represented, increasing production capacity and by closing gaps in cost-competitiveness and innovation.
Refinery Services focuses on solutions and the provision of an extensive portfolio of customized chemical and service solutions to help customers with compliance challenges of the entire processing and blending chain, all the way to the gas pump.
Strategic Objectives - Functional Minerals
Functional Minerals focuses on strengthening its position as the market leader in bentonite-based solutions by strategically securing its global raw material sources, continuously improving its cost base in mature regions and aggressively growing in emerging markets, leveraging the Clariant footprint and global megatrends such as increased edible oil consumption by a growing middle class, infrastructure upgrades and mobility demands.
Current EBITDA margin (before exceptional items)
15 - 17 %
EBITDA target margin (before exceptional items)
- Generating a sales growth of 6 – 7 % per year
- Increasing demand triggered by the trends in the oil and gas industry: especially deepwater drilling, unconventional oil and gas extraction
- Expansion of market leadership in the area of ore flotation and opening up new markets through innovations
- Increase of the profitability of Functional Minerals by improved cost and technology platforms
- Growth in sediment management and feed additives as well as in emerging markets for metal casting and edible oil refinement
+ 14 %
Sales in million CHF
in local currencies
EBITDA in million CHF
Key Drivers for Natural Resources
Emerging Markets and Continued Urbanization
- Increasing spending on food, mobility and construction in emerging markets
- General population growth, growing middle-class, and increasing consumption of commodities
Entering a Second Agricultural Revolution
- Palm oil being the cheapest and most productive crop for edible oil
- Increasing use of biofuels in the EU and the US
Depletion of Wells
- Secure the access to oil, through advanced and unconventional methods for oil recovery (deepwater, enhanced oil recovery)
Changing Mining Challenges
- Lower mineral contents in mines
- Multiple ore minerals in one mine
- Mining in developing regions