A “dramatic deterioration of demand” from key markets such as textiles, leather, automotive and construction in Q4 2008 has led Clariant (Muttenz / Switzerland; www.clariant.com) to announce another 1,000 job cuts – this time mainly in sales and administration. A two-year reduction of the workforce by 2,200 positions was just completed at the end of last year – see Plasteurope.com of 17.11.2006. In December, the speciality chemicals producer said it would extend the Christmas break at several plants and run down overtime. In Germany, it planned to introduce short-time working (see Plasteurope.com of 12.12.2008). In September 2008, Hariolf Kottmann replaced Jan Secher as CEO.

Going forward, Clariant said it will “adapt its structures to the economic situation” and address the performance gap towards its peers by “decisively downsizing the company and reducing expenditure.” The “clear focus” in 2009 will be on cash generation and, accordingly, the board of directors plans to ask the annual general meeting on 2 April 2009 to miss the annual dividend. Among speciality chemicals players, masterbatch and additives specialist Clariant will be struggling alone through the demand crisis. Swiss “neighbour” Ciba (Basel; www.cibasc.com) is being absorbed by BASF.

According to preliminary figures, Clariant’s sales picked up by 1% in local currencies in 2008, but declined by 5% in Swiss francs to CHF 8.1 bn (EUR 5.1 bn). The operating margin before exceptionals was 6.5-6.8%, and the group said net debt was reduced. Final results for 2008 will be published on 17 February 2009.