Clariant’s China strategy on track to deliver growth
Clariant, a world leader in specialty chemicals, today announced that the company is making good progress with the implementation of its dedicated China strategy. After announcing this strategy in 2016, Clariant continued its commitment to innovation and sustainability in combination with improvements in governance, increased production capacity and more local cooperation. These regional growth initiatives have the potential to double sales from the 2015 baseline until 2021.
"2017 was a successful year for Clariant in China, with 13 % sales growth and an increase in profitability. We are convinced that with our holistic growth initiative we are able to double our sales from the 2015 baseline until 2021 by continuing this successful shift towards adapting ourselves to the Chinese market and business mindset," said Christian Kohlpaintner, Clariant’s Executive Committee Member responsible for and based in China, at Clariant’s Defining the Future 8 Conference in Hangzhou, China.
Since China is fundamental to Clariant’s overall growth strategy, the company acted on various fronts in order to improve its position in this vital market. Its continued commitment to innovation and sustainability has made the company one of the industry leaders in these areas. At a time where the Chinese industry continues to upgrade to higher value and more technology-driven solutions and prioritizes environmentally-compatible chemical solutions, Clariant is well positioned to capture these growth opportunities.
Capacity expansions, such as the two additional Chinese production facilities for the Additives business unit announced in 2017, enable the company to meet this growing local demand and improve proximity to customers as well as raw material suppliers. This proximity is stimulated further by setting up new joint ventures, partnerships and other forms of cooperation with local Chinese companies and research institutions. Over the past year, Clariant established a joint venture with Tiangang Auxiliary to serve the growing need of process and light stabilizers made in China, signed a major cooperation agreement with China's largest petroleum and chemical company SINOPEC and continued the momentum of local collaborative innovation with the Chinese academic sector by signing a Memorandum of Understanding (MOE) with Shanghai University.
Clariant also looks to expand its e-commerce sales throughout the Greater China region via an online store on 1688.com, a business-to business (B2B) platform within the Alibaba group.
Finally, a new regional governance model built on Chinese top managers with profit and loss responsibilities greatly improved strategic dialog and alignment. These benefits will be further leveraged within the One Clariant Campus, an integrated regional headquarters and innovation facility being built in Shanghai and scheduled to be completed by 2020.
"We are really making progress across the board in China and are proud to be a driver for both innovation and sustainability in all of our markets. Now and in the future, offering sustainable and innovative solutions will not just provide more opportunities, but will become an undisputed necessity as we drive our vision to be a China Insider and acitvitely support the transformation of China’s chemical industry," said Jan Kreibaum, Clariant’s Head of Region Greater China and Korea.