Firmly Optimistic about the Chinese Market - Clariant Executives Discuss Investment and Sustainable Development in China
2025-11-17
Recently, Clariant's investment in China has witnessed another significant development: On November 5th, Clariant held a commissioning ceremony for the expansion project of its high-performance surfactants and high-performance halogen-free flame retardants at its Dalianwan base in Huizhou, Guangdong Province. After the ceremony, the company's global executives including CEO Conrad Koenig, President of the Personal Care Chemicals Business Unit Guishengwen Wan, and President of the Adsorbents and Additives Business Unit Ankevi, along with the media, had in-depth discussions on expanding investment in China and the company's sustainable development strategy. They stated that this commissioning not only represents a capacity increase for a world-class factory but also is Clariant's firm endorsement of the Chinese market.
Profitability continues to improve.
Before the commissioning ceremony, the performance data of Coherent for the third quarter of the 2025 fiscal year that was just disclosed by the company provided a strong endorsement for its significant investment. The data showed that in the first three quarters, Coherent, through its performance improvement plan and pricing and cost management measures, achieved an EBITDA margin (excluding special items) of 18.0%, an increase of 160 basis points from the same period last year.
In the face of the numerous challenges in the global chemical industry, Clariant's performance can be described as "advancing against the tide". Since 2021, Clariant has achieved an average annual revenue growth of 4%, and its profitability has continued to improve. In the fiscal year 2024, the EBITDA profit rate reached 15.8%, higher than 13.9% in 2023, and it is expected to further increase to 17% - 18% in 2025, achieving strong growth for three consecutive years.
Conrad stated at the media conference that Clariant was able to weather market fluctuations, and the key to this was its precise positioning of "specialty chemicals". He explained that energy costs accounted for only about 5% of the company's total costs, which made the company less affected by the European energy crisis than its competitors. The underlying logic is that Clariant does not offer homogeneous bulk commodities, but rather specialty chemical solutions with high technological barriers and unique value.
The main thread of sustainable development is clear.
Among the production lines that were put into operation by Clariant this time, one of the key goals of the expansion of the personal care chemicals production line is to upgrade the pharmaceutical production capacity, and a second spray tower has been added. "This upgrade will consolidate Clariant's leading position as a supplier of raw materials and excipients for intestinal cleansers in China," said Guisheng Wan.
Regarding the expansion of another high-performance halogen-free flame-retardant production line, Ankevi stated that this demonstrates the company's commitment to supporting the significant growth in the application of engineering plastics in the electric mobility and electronic electrical sectors. It will also enhance the company's ability to serve customers in the Asia-Pacific region, shorten delivery times, and provide customized solutions.
"Whether it is in the field of care chemicals or flame retardants, all of Clariant's innovations are guided by a clear main thread - sustainable development." Guisheng Wen emphasized. "Sustainability is an excellent reason for innovation." Clariant has provided carbon footprint data for all its customers to help them calculate and reduce carbon emissions in their supply chains. For instance, the Dalian Bay plant uses 100% green electricity and continuously reduces water, electricity, and gas consumption as well as "three wastes" emissions through process optimization.
It is reported that last year, Clariant even strengthened its commitment: the goal is to increase the production-related direct and indirect emission reduction targets from 40% to 46% by 2030, and also raise the emission reduction target of the entire industrial chain from 14% to 28%.
China is a key strategic market.
Regarding the Chinese market, Conrad emphasized: "China has ranked among the top ten most innovative countries in the world. In a complex market environment, being close to customers, conducting local innovation, and maintaining supply chain resilience are our core competencies."
Conrad further stated: "We attach great importance to the Chinese market. In the '15-19' planning proposal of China, the 'dual carbon' goal was reaffirmed once again. For Clariant, the effect of emission reduction is the result of our efforts, and it is not merely a direction."
The "dual-line commissioning" at Daya Bay this time is a microcosm of Clariant's strategy in China. It is not merely the localization of production and manufacturing, but also the deep localization of R&D, innovation and even strategic decision-making. According to Clariant's plan, its goal is to achieve an innovation rate of approximately 20% by 2027. In the coming years, the proportion of total sales in the China region is expected to increase from the current approximately 10% to 14%. Conrad said at the commissioning ceremony: "As of today, about 50% of our products for the Chinese market are produced in China, and approximately 80% of the raw materials we need are purchased locally."
Conrad finally emphasized that China has become the world's largest chemical market, accounting for over 40% of the global market share, surpassing the combined total of the United States and Europe. It is expected that more than half of the global chemical production growth in the next five years will come from China. "Therefore, China is the core strategic market for Clariant and all chemical enterprises," Conrad said.
Profitability continues to improve.
Before the commissioning ceremony, the performance data of Coherent for the third quarter of the 2025 fiscal year that was just disclosed by the company provided a strong endorsement for its significant investment. The data showed that in the first three quarters, Coherent, through its performance improvement plan and pricing and cost management measures, achieved an EBITDA margin (excluding special items) of 18.0%, an increase of 160 basis points from the same period last year.
In the face of the numerous challenges in the global chemical industry, Clariant's performance can be described as "advancing against the tide". Since 2021, Clariant has achieved an average annual revenue growth of 4%, and its profitability has continued to improve. In the fiscal year 2024, the EBITDA profit rate reached 15.8%, higher than 13.9% in 2023, and it is expected to further increase to 17% - 18% in 2025, achieving strong growth for three consecutive years.
Conrad stated at the media conference that Clariant was able to weather market fluctuations, and the key to this was its precise positioning of "specialty chemicals". He explained that energy costs accounted for only about 5% of the company's total costs, which made the company less affected by the European energy crisis than its competitors. The underlying logic is that Clariant does not offer homogeneous bulk commodities, but rather specialty chemical solutions with high technological barriers and unique value.
The main thread of sustainable development is clear.
Among the production lines that were put into operation by Clariant this time, one of the key goals of the expansion of the personal care chemicals production line is to upgrade the pharmaceutical production capacity, and a second spray tower has been added. "This upgrade will consolidate Clariant's leading position as a supplier of raw materials and excipients for intestinal cleansers in China," said Guisheng Wan.
Regarding the expansion of another high-performance halogen-free flame-retardant production line, Ankevi stated that this demonstrates the company's commitment to supporting the significant growth in the application of engineering plastics in the electric mobility and electronic electrical sectors. It will also enhance the company's ability to serve customers in the Asia-Pacific region, shorten delivery times, and provide customized solutions.
"Whether it is in the field of care chemicals or flame retardants, all of Clariant's innovations are guided by a clear main thread - sustainable development." Guisheng Wen emphasized. "Sustainability is an excellent reason for innovation." Clariant has provided carbon footprint data for all its customers to help them calculate and reduce carbon emissions in their supply chains. For instance, the Dalian Bay plant uses 100% green electricity and continuously reduces water, electricity, and gas consumption as well as "three wastes" emissions through process optimization.
It is reported that last year, Clariant even strengthened its commitment: the goal is to increase the production-related direct and indirect emission reduction targets from 40% to 46% by 2030, and also raise the emission reduction target of the entire industrial chain from 14% to 28%.
China is a key strategic market.
Regarding the Chinese market, Conrad emphasized: "China has ranked among the top ten most innovative countries in the world. In a complex market environment, being close to customers, conducting local innovation, and maintaining supply chain resilience are our core competencies."
Conrad further stated: "We attach great importance to the Chinese market. In the '15-19' planning proposal of China, the 'dual carbon' goal was reaffirmed once again. For Clariant, the effect of emission reduction is the result of our efforts, and it is not merely a direction."
The "dual-line commissioning" at Daya Bay this time is a microcosm of Clariant's strategy in China. It is not merely the localization of production and manufacturing, but also the deep localization of R&D, innovation and even strategic decision-making. According to Clariant's plan, its goal is to achieve an innovation rate of approximately 20% by 2027. In the coming years, the proportion of total sales in the China region is expected to increase from the current approximately 10% to 14%. Conrad said at the commissioning ceremony: "As of today, about 50% of our products for the Chinese market are produced in China, and approximately 80% of the raw materials we need are purchased locally."
Conrad finally emphasized that China has become the world's largest chemical market, accounting for over 40% of the global market share, surpassing the combined total of the United States and Europe. It is expected that more than half of the global chemical production growth in the next five years will come from China. "Therefore, China is the core strategic market for Clariant and all chemical enterprises," Conrad said.
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