Clariant accentuates environmental credentials
Print Edition
Hariolf Kottmann is the chief executive officer of Swiss specialty chemicals company Clariant Ltd. Since 2012, he has been a member of Clariant’s board and is also chairman of the Program Council Product Stewardship at the European Chemical Industry Council.
Born in 1955, Kottmann earned his PhD in organic chemistry at the University of Stuttgart in 1984.
Shanghai Daily was among a small group of reporters who recently sat down with Kottmann to discuss the company’s environmental strategy and its China business plan.
Q: The Chinese government has mapped out its energy consumption blueprint for years leading up to 2030. How will that affect your company’s businesses and investment?
A: I don’t think there is any particular impact for us. We have our own program in place, quite apart from the government’s plan. If China adopts strong legislation, it won’t be a problem for us.
When it comes to energy, to safety and to environmental issues, we are operating according to German laws, which are one of the world’s strongest. I will say that the Chinese government plan is beneficial for a company like Clariant because it will eliminate some local competition. I can understand why people living in China are standing up and forcing an improvement on environmental issues. We have the right mix of products in our portfolio to increase environmentally friendly production and reduce energy consumption.
Q: What is Clariant’s strategy for avoiding damage to the environment?
A: Clariant has been operating for 20 years. Our parent companies — Swiss-based Sandoz and German-based based Hoechst — were operating according to German industrial legislation on pollution and emissions. We have always been operating at the highest possible standards from all over the world, not just European. There’s no difference in how we operate in India or in Indonesia. It’s always the same system, the same standards. When it comes to accident rates, we have one of the lowest in the global chemical industry. Our “lost time accident rate” is below 0.3 percent, which means we are really in a leading position.
Q: Clariant currently has four key business areas — care chemicals, catalysis and energy, natural resources, and plastics and coatings. Which are the most important for the Chinese market?
A: When we talk about the future of Clariant, catalysis and energy is the most important one and also the one most promising for growth and profitability.
The second important one is care chemicals because there we have all the products for personal care and industry, such as cosmetics, detergents and crop solutions. In a market like China, it is extremely important to be very competitively positioned.
Q: The company has announced the establishment of a research and development center for catalysts in Shanghai. How is that project going?
A: We have already hired, in Germany, maybe nine Chinese scientists who did their PhDs in Germany and the UK. They are currently working in the catalyst research center in Frankfurt, building up their expertise. They are also prepared to move to Shanghai when we open our center here. The location is decided and the architects are already drafting plans. We will start building maybe in 2015 or 2016.
Q: Is your company planning mergers and acquisitions in China?
A: Mergers and acquisitions in China are very difficult. Maybe that has to do with the mindset of the Chinese people, which is so different from that of the Swiss or Germans. That means having two different cultures at the table. At the same time, there are not so many interesting targets. We often come to the conclusion it is better to grow organically. We can do that in a better, faster way than by engaging in negotiations that may last for months or years. Those companies that might be attractive to us aren’t for sale. They are more interested in making acquisitions in Europe or in the US.
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