Problems in its automotive division gradually seem to be overwhelming Sarna Polymer Holding (CH-6060 Sarnen; www.sarna.com) – see PIE 19, 2004. The company has announced that its newly reconstituted board of directors is considering abandoning the dual strategy, with the two divisions of Sarnafil and Sarnamotive, adopted at the end of 2001. Sarnafil´s plastic seals business for the construction sector, currently enjoying good business, will be retained in any case. The potential of the automotive sector, by contrast, can be “exploited faster and more efficiently through a partnership or a divestment,” the company said cryptically. Options are currently beingscrutinised, and the outcome could be a continuation of the current strategy or the partial or even complete divestment of the automotive supplier.

After Sarna launched withdrew from technical component production in 2001, the automotive division remained as its second core business alongside Sarnafil. This division, then considered highly promising, suffered a decline in 2002 and, since then, expansion plans have had to be revised and corrected several times. In Europe, the German location of Lüdenscheid, home to the principal company Paulmann & Crone, suffered job losses. Parallel to this, severe problems were encountered with business in the US, where Sarna acquired supplier Blue Water in 2000. The signs seem to suggest that the company will most likely withdraw from this unrewarding sector.