Clariant sells North American onshore oil business

On October 30, Clariant announced that it had spun off its North American onshore oil business to Dorf Ketal, a special chemicals manufacturer and service provider headquartered in India. This business divestiture will further improve Clariant's product portfolio structure, make it take a new step towards sustainable development, and focus Clariant's operation on special chemicals and value-added solutions.

It is reported that Clariant's North American onshore oil business provides chemical technology and services to the North American oil and gas industry, with a sales volume of $113 million in 2021. Subject to standard closing conditions, the initial selling price was set at 14.5 million US dollars. The transaction will bring about a non cash impairment of about 245 million Swiss francs, which will be recorded before the end of the year, and will not affect the profit in the third quarter of 2022. According to the financial report, the transaction is still pending approval and is expected to be completed in the first quarter of 2023.

Clariant CEO Kang Ruide stressed that Clariant's goal is to achieve higher profitability through sustainability and innovation and achieve growth above the market level. Clariant stripped off its medical packaging business in 2019, color masterbatch business in 2020, and pigment business in 2022, thus completing the remodeling of its product portfolio. Clariant has become a real specialty chemicals company. Kangruide said that the company will implement a new operation mode in the fourth quarter. Although it will incur some additional restructuring costs, this measure will simplify its organizational structure and enable the group to continue to move forward towards the target set for 2025.