Clariant International Ltd. is to establish a separate subsidiary for its plastics and coatings business which includes its masterbatches, additives and pigments in order to improve profitability and cash generation.
The new business will start operating on January 1.
Clariant chief executive Hariolf Kottmann, said: “The new Plastics and Coatings subsidiary will further enable differentiated business steering with a clear focus on absolute profitability and cash generation to further safeguard and improve competitveness in already mature markets.
He added: "This step will also enable us to make appropriate investments in our growth areas.”
Muttenz, Switzerland-based Clariant's existing masterbatches, additives and pigments will be maintained with approximately 7,000 employees, all assets and liabilities. Sales for the businesses were 2.6 billion Swiss francs ($2.67 billion) in 2014.
The reported earnings before interest, tax, depreciation and amortization (EBITDA) margin before exceptional items was 14 percent.