The board of directors of Chemie + Papier Holding (CPH, Perlen, Switzerland; www.cph.ch/en) has announced its intention to split the holding into two independent companies. It said the aim is to bring together its chemistry and packaging activities under CPH Group, and to merge its paper business with real estate development under Perlen Industrieholding.

According to the company, its fast-growing Chemistry and Packaging divisions are well positioned in global niche markets, while its regional paper business, focused on cost leadership, is more volatile.

Whereas CPH’s packaging division with PVC blister film managed to increase both sales and earnings last year, the significant losses of its paper division had a substantial impact on total company sales, which slumped 14% to CHF 624 mn (EUR 645 mn). 

The fluctuations at its paper unit made it difficult to consistently calculate the development of earnings at group level. “CPH Group will now become more predictable for investors,” a company spokesperson said. While the group said it will continue to be listed on the stock market, Perlen Industrieholding shares are to be traded over the counter.

CPH said no changes in operations are planned at the three divisions, nor will there be any changes for employees as a result of the new holding structures.

If the shareholders approve the transaction on 20 June 2024 at an Extraordinary General Meeting, the separation should go ahead as planned – subject to official approval.