Clariant blames Asian competition for job cuts
The Swiss-based specialty chemicals group, Clariant, is to cut up to 280 jobs in Switzerland.
The company said it had sealed redundancy agreements with workers’ unions at its Muttenz and Reinach plants, which it said had fallen victim to foreign competition.
Over the next two years, Clariant will cut some 4,000 jobs worldwide, from a total workforce currently at 28,000.
The moves are part of a push to cut costs and find a way to reduce the company’s debts, which are largely linked to its purchase of British chemicals maker BTP in 2000.
Analysts welcomed the redundancy agreements.
“It is good news as it shows the process is now ongoing, and it is always good for investor sentiment to see that they are on track,” said Damien Weyermann, an analyst at Lombard Odier Darier Hentsch.
The company said 100 of the redundancies would come through direct sackings, with the rest through retirement and natural attrition.
Asian production
In a statement released on Wednesday, Clariant blamed declining sales and competition from chemical plants, particularly in Asia, for the Swiss job cuts.
“Clariant has seen a 25 per cent decline in sales in recent years, combined with a sharp fall in profits,” the statement said.
“This is essentially a result of the global business trend, especially in the textile industry, for companies to follow their clients and shift production to Asia.
“The Muttenz plant, which is heavily dependent on the production of textile dyes, is not immune to this development.”
Clariant, which is best known for making pigments used on products such as jeans and cars, is also reportedly trying to sell several business units, including its electronic materials division.
It said talks are well advanced.
The Swiss-based redundancies are due to be completed by the end of 2005.
swissinfo with agencies
Clariant is cutting 4,000 jobs worldwide – 280 of them in Switzerland.
The company’s workforce currently totals 28,000.
Clariant blamed declining sales and increased competition for the job cuts.
It is best known for making pigments used on products including jeans and cars.
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