Natural Resources

General information

In the 2022 financial year, the Business AreaBusiness AreaFor the financial reporting, Clariant grouped its businesses in three core Business Areas: Care Chemicals, Catalysis, and Natural Resources. As of 1 January 2023, the Group conducts its business through the three newly formed Business Units Care Chemicals, Catalysts, and Adsorbents & Additives and will report accordingly as of the first quarter of 2023.View entire glossary Natural Resources offered high-performing products and custom-tailored solutions for the mineral, oil, and gas extraction businesses, as well as for food, plastic, coating, adhesive, foundry, and inks applications. It consisted of three business units: Oil and Mining Services, Functional Minerals, and Additives.

Natural Resources in the 2022 financial year

OVERVIEW

The Business AreaBusiness AreaFor the financial reporting, Clariant grouped its businesses in three core Business Areas: Care Chemicals, Catalysis, and Natural Resources. As of 1 January 2023, the Group conducts its business through the three newly formed Business Units Care Chemicals, Catalysts, and Adsorbents & Additives and will report accordingly as of the first quarter of 2023.View entire glossary Natural Resources comprises Functional Minerals, Oil and Mining Services, and Additives. Functional Minerals operates a fully integrated value chain, from the exploration and mining of bentonites to the processing of finished products to the application of technical know-how at the customer’s operations. Oil and Mining Services provides innovative chemistry, technology, and service solutions for the oil, mining, and refinery industries. Additives serves markets for plastics, coatings and inks, adhesives, agro and care applications ranging across electrical and electronics, packaging, transportation, consumer goods, building and construction, textile, as well as agriculture industries.

APPLICATIONS

Business Unit Functional Minerals

• Bio- and renewable fuel purification
• BTX catalysts
• Cargo and device protection
• Cat litter
• Chemical recycling
• Civil engineering
• Clay specialties
• Detergent additives
• Edible oil purification
• Feed additives
• Foundry additives
• Kerosene and jet fuel purification
• Paper additives
• PVC stabilizers
• Wastewater treatment

Business Unit Oil and Mining Services

• Chemical delivery and data management systems
• Cold flow improvers
• Emulsifiers for explosives
• Fluid separation
• Froth flotation
• Oilfield integrity management
• Oil flow assurance
• Pelletizing
• Pour point depressants
• Well Service Additives

Business Unit Additives

• Acid scavengers
• Antioxidiants
• Antistatic agents
• Halogen-free flame retardants
• Heat stabilizers
• Hot-melt adhesives
• Light stabilizers
• Lubricants
• Processing aids
• Processing stabilizers
• Release agents
• Slip control agents
• Surface modifiers

PRIORITY SDGs

• SDG 2 Zero Hunger
• SDG 3 Good Health and Well-being
• SDG 7 Affordable and Clean Energy
• SDG 12 Responsible Consumption and Production
• SDG 13 Climate Action

The business area profited from several business drivers:

• stricter global chemical regulations and customer expectations that drive sustainability in oil, mining, and purification as well as circularity in plastic, coating, and adhesive;
• increased demand for minerals and lightweight, sustainable fire safety and thermoresistance requirements for digitalization and e-mobility;
• consumer demand for enhanced health and safety;
• growing regulation regarding biofuels, such as the Renewable Energy Directive (RED II).

Oil and Mining Services

The Business Unit Oil and Mining Services is a leader in the development, manufacture, application, and supply of chemicals. It provides products to over 700 customers in the oil, gas, mining, and refinery industries as well as services for many customers in the oil and gas industries. The largest segment of the business unit is Oil Services. The products are applied at different points in the oil process: drilling operations, completions, and production. They help to prevent corrosion of metal components, to maintain flow, and to separate fluids into clean oil and clean water. The mining products of the business unit are used to separate valued minerals in the processing of mineral ores by flotation and to deal with the waste materials of this process, the so-called »tailings.« The business unit also provides the global mining industry with emulsifiers for explosives, as well as cold-flow additive applications for middle distillates in refineries, including diesel, home heating oils, and biofuels.

Most of these products are customized for the needs of individual mines or oil production challenges. Technical experts from the business unit analyze the customer applications and develop unique solutions. This results in over 5 000 custom-made formulations developed using industry insights and state-of-the-art statistical data analysis, combined with high-throughput experimentation methods.

The business unit’s customers are located in the major oil- and mineral-producing regions around the world. The production facilities of the business unit are located in Brazil, Chile, the United States, Mexico, Australia, South Africa, Spain, and Germany.

In late 2022, Clariant agreed to enter a definitive transaction documentation to divest its North American Land Oil business to Dorf Ketal, a specialty chemicals manufacturer and service provider headquartered in India. The transaction is subject to customary closing conditions and is expected to be consummated in the first quarter of 2023.

Functional Minerals

The Business Unit Functional Minerals is a leading provider of mineral-based specialty products. It operates a fully integrated value chain – from the exploration and mining of bentonites to the processing of finished products to the application of technical know-how at the customer’s operations. Its production sites are located across the globe, offering over 1 500 products tailored to the needs of more than 3 400 customer across a diverse range of industries.

For edible oils and fats purification, for example, the business unit offers Tonsil®, a highly active adsorbent that is 100 % natural. Looking back on over a century of success in the market, the product is continually being developed to provide optimum efficiency. In addition, the Tonsil® RNF series offers producers of biofuels and renewable fuels specialty adsorbents for the purification of waste oils and fats to significantly enhance the efficiency and economics of their production process. The product removes impurities that occur in waste oils and fats, thus prolonging the life and efficiency of high-value catalysts further downstream of the renewable diesel and sustainable aviation fuel production.

Other products of the business unit include GEKO™ natural molding sand additives and ECOSIL™ lustrous carbon former, which help foundries across the globe to achieve precision castings. Furthermore, for customers in need of cargo and device protection, various solutions are offered. DESI PAK® desiccants achieve exceptional results in protecting goods from moisture, and DESVOCANT™ VOC adsorbents help to control and eliminate the accumulation of volatile organic compounds (VOCs) due to the off-gassing of products enclosed in packaging to fully loaded shipping containers. In addition, Container Dri® II cargo desiccants protect shipments from moisture damage. GEKO™, ECOSIL™, and Container Dri® II all carry the Clariant EcoTain® label for products with outstanding sustainability advantages.

Additives

The Business Unit Additives is a major supplier of flame retardants, performance additives, and advanced surface solutions for functional effects in plastics, coatings and inks, adhesives, agro and care applications. With production sites in Europe and China, it produces about 300 different products for approximately 1 500 customers worldwide.

The products of the business unit are used in many different applications. For example, the halogen-free Exolit® flame retardants comply with fire safety standards for buildings, electrical and electronic equipment, transportation (including e-mobility), and other applications. AddWorks® solutions are ready-to-use packages that prevent oxidation, dissipate electric charge accumulation, and improve heat, light, and weather resistance. Licocene® stands for advanced surface solutions consisting of polymers and waxes. They provide the right balance of adhesion and cohesion while offering high heat resistance. And the bio-based Licocare® RBW Vita range offers high-performing surface solutions for demanding plastic, coating, and agricultural applications. Made from non-food-competing rice bran wax, these products have a Renewable Carbon Index of at least 98 % and contribute to a substantial reduction of CO₂ emissions.

As of January 2023, the Business Units Functional Minerals and Additives are combined into a single Business Unit »AdsorbentsAdsorbentsUsually solid substances which are able to selectively accumulate certain substances from adjacent gaseous or liquid phases.View entire glossary & Additives,« while Business Unit Oil and Mining Services has become a part of the new Business Unit »Care Chemicals.« This reorganization is part of the simplified organizational and leadership structure that is outlined in greater detail in the chapter »Business model and strategy – organizational structure.«

Market dynamics in 2022

In 2022, plastic, coating, and adhesive markets continued to rebound post-COVID-19, but were affected by ongoing disruptions in global supply chains and production shutdowns due to critical raw material shortages and inflationary prices. Sustainability continued to be a main global trend in the markets that are relevant to the business area. The year saw further progress in stricter global regulations and growing customer expectations concerning CO₂ emissions, waste reduction, circularity, and sustainability.

The ongoing recovery of the global industrial sector, especially in transportation, drove growth in the plastic and coating markets in particular. The mining industry also improved, driven by increased mineral production to support electrification, high commodity prices, and an increased focus on improving the sustainability of mining operations. Oil production volumes recovered. However, additional investment in the upstream oil and gas industry is needed to sustain the global production demand and drive the transition to cleaner energies. As the refining industry is also recovering, it explores ways to shift toward bio- and renewable fuels and solutions.

Consumer behavior changed in different ways that are relevant for the business area. This change includes greater concern for health and safety and an increased consumption of vegetable oils. Furthermore, tremendous stimuli from governments and increased commitments from operators, including airlines, were the main drivers for the continued demand for biofuels and, more notably, the strong growth for renewable fuels and sustainable aviation fuel (SAF).

How Business Area Natural Resources created value in 2022

In the full year 2022, sales in the Business AreaBusiness AreaFor the financial reporting, Clariant grouped its businesses in three core Business Areas: Care Chemicals, Catalysis, and Natural Resources. As of 1 January 2023, the Group conducts its business through the three newly formed Business Units Care Chemicals, Catalysts, and Adsorbents & Additives and will report accordingly as of the first quarter of 2023.View entire glossary Natural Resources increased by 25 % in local currency and by 20 % in Swiss francs, driven by both higher prices and volumes. All three Natural Resources business units contributed to the sales growth, which was observed across all regions. Growth in Additives was particularly strong overall and driven by automotive (e-mobility) as well as electronic applications, among others. Growth in Oil and Mining Services came from increased market demand, most notably in Oil Services, as well as successful price measures. Functional Minerals saw growth in its key business lines, Purification and Cargo & Device Protection especially. The EBITDAEBITDAEarnings before interest, taxes, depreciation, and amortization.View entire glossary margin for 2022 increased to 18.0 % from 17.0 % year on year as a result of the strong top-line advance, which was propelled by both pricing and higher volumes and thus resulted in improved operating leverage.

New products

In 2022, the business area launched several new products: Licowax® AS 100 TP, a new anti-scratch additive for PP & TPO formulations that helps extend the service life of consumer goods and boosts reuse potential of plastics used in consumer applications. New AddWorks® AGC 970 is Clariant’s latest light stabilizer solution for polyethylene agricultural films that offers the mulch segment a step-up in product durability. Licocare® RBW 560 TP Vita is a bio-based wax for reduced cycle times and easier processing of injection-molded polyester compounds. The benefits make it particularly attractive to formulators for use in the E&E and transportation industries. Clariant also introduced new products in the Exolit® OP 1400 series with two new grades specifically to help polyamides meet safety regulations for unattended household electrical appliances – like white goods, for example.

In October 2022, Clariant also unveiled a product portfolio for the emerging market of chemical recycling as an advanced solution for plastics that cannot be recycled mechanically. The new Clarit™ adsorbents and HDMax® catalysts are designed for the purification of pyrolysis oil made from mixed plastic waste to achieve cracker-compatible feedstock. The portfolio answers the need for flexible and economical solutions to remove a wide range of contaminants, regardless of process configuration and plastic waste feedstock. Used together, the adsorbents extend the lifetime of the catalyst by reducing impurities. See also the Catalysis chapter

Q&A

Angela Cackovich

Business President AdsorbentsAdsorbentsUsually solid substances which are able to selectively accumulate certain substances from adjacent gaseous or liquid phases.View entire glossary & Additives and EMEA

Member of the Executive Steering CommitteeExecutive Steering CommitteeThe Executive Steering Committee (ESC) is authorized by the Board of Directors to steer the company. It has overall strategic and financial responsibility, including for our profit and loss statement. The ESC consists of the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), and the three Business Presidents.View entire glossary

You joined Clariant this year, having held management positions in various international companies before. What have been your impressions so far?

I see a strong collaboration between employees and teams at Clariant. Sharing information and taking all perspectives into account is part of our DNA. Additionally, I see our teams not only having tremendous know-how around technologies, applications, and customers, but also a very professional approach. That is a great basis for capturing the many opportunities in front of us, as our customers need access to renewable materials and to products and solutions enabling circularity.

Your new role here is threefold: You head a newly formed business unit, as well as Clariant’s EMEA region, and you are also a member of the Executive Steering Committee. How do you bring these different responsibilities together?

These are not necessarily different responsibilities, as our ongoing transformation process and our resulting changes in the organizational structure resulted in reduced hierarchy and increased empowerment. As a member of the Executive Steering CommitteeExecutive Steering CommitteeThe Executive Steering Committee (ESC) is authorized by the Board of Directors to steer the company. It has overall strategic and financial responsibility, including for our profit and loss statement. The ESC consists of the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), and the three Business Presidents.View entire glossary , my responsibility within Clariant is broader, but I also represent the Business Unit AdsorbentsAdsorbentsUsually solid substances which are able to selectively accumulate certain substances from adjacent gaseous or liquid phases.View entire glossary & Additives, as well as the EMEA region. Combining these responsibilities works quite well thanks to empowered teams and clear roles and responsibilities in the global business unit and in the regional organization.

What are your plans for the BU?

The key markets of our Business Unit AdsorbentsAdsorbentsUsually solid substances which are able to selectively accumulate certain substances from adjacent gaseous or liquid phases.View entire glossary & Additives are changing. Sustainability and the circular economy are big disrupters for our customers’ value chains. These developments generate significant opportunities for our sustainable offerings, such as in electronics, e-mobility, packaging, adhesives, food and renewable fuels. We will continue to improve our CO₂ footprint and handprint. We also invest in innovation and assets to grow in applications triggered by regulations, customer needs, and brand owner commitments. In this way, we will achieve above-average growth in our key markets and lead with sustainability-driven innovative solutions.

New initiatives

In the context of the EU plans to phase out all internal combustion engine vehicles by 2035, the three-year EU-funded Revolution Project brings together organizations from ten countries across the entire automotive value chain. The project is aimed at developing lightweight car parts and increasing circularity by facilitating the recycling of materials and use of recycled polymers. Business Unit Additives helps to validate and develop solutions that push plastic materials beyond current performance and sustainability boundaries and help to meet minimum recycling targets for plastic components in vehicles as expected in the upcoming EU legislation. Solutions from Clariant include additives for maintaining high-quality polymer recyclate and for increasing recycled content in finished lightweight recyclable parts.

In a unique collaboration for the Personal Care industry, Clariant, Siegwerk, Borealis, and Beiersdorf aim to create recyclable consumer packaging for cosmetic applications based on 100 % retrieved plastic packaging waste. The pioneering initiative, named »Design4Circularity,« provides design innovations and insights concerning design for circularity principles. Circular packaging supports reduced plastic waste, less use of virgin plastic material, and reduced climate impact.

As Clariant embraces its new purpose-led strategy, Oil Services introduced new solutions and technologies designed for customers with sustainability at the forefront. As part of this initiative, the business line launched the D3 PROGRAM – a novel program designed to support carbon reduction and sustainability in the oil and gas industry. The initiative optimizes onshore and offshore operations and introduces more environmentally acceptable formulations as energy demand soars. The D3 PROGRAM embodies Clariant’s new direction as a company and provides workable solutions for the energy industry.

New locations

In October 2022, Clariant closed the acquisition of BASF’s Attapulgite business assets. The business is well recognized for its unique combination of mineral quality, mine reserve size, and strategic location. The newly integrated site and 70 highly qualified employees will increase the production capacity of Clariant adsorbents in North America to cater for the growing market of renewable fuels purification.

Following the start of construction for its first flame retardant production facility in China, Clariant announced an investment in a second production line in October 2022. The additional investment will further expand access to innovative and sustainable fire protection solutions and related technical expertise. This supports the significant growth of engineering plastics applications in e-mobility, electrical and electronics segments, transportation, 5G communications, infrastructure, and appliances. Clariant is aiming to commence production in Daya Bay around mid-2023, with the second line due to come onstream within 2024.

FEATURED STORY

Can biomass waste improve manufacturing efficiencies and circularity?Licocare® RBW Vita waxes are a positive contribution to a circular carbon economy, carrying Clariant’s »Vita« designator because of their exceptionally high share of renewable carbon content – in this case 100 %. Learn more

In October 2022, Clariant launched its Decarbonization Minerals Program. This program is dedicated to helping the mining industry meet the increasing demand for decarbonization minerals and rare earths. Clariant is investing resources to develop new flotation reagents and other processing chemicals so that mining companies can optimize their beneficiation plants. In addition, Clariant’s Competence Center for Decarbonization Minerals in Dubai helps customers optimize metallurgical performance, maximize recovery and grade, and create more sustainable solutions for the processing of decarbonization minerals.

Certifications and awards

For more than a decade, DSM Engineering Materials and Clariant Additives have cooperated in a commercial relationship and a deep technical partnership with several joint projects. In the field of sustainability, the companies have had exchanges on product carbon footprint methodologies and are now looking into ways to improve the recyclability of flame-retarded polyamides. In November 2022, Clariant’s efforts were awarded the DSM Sustainability Award.

The Business Unit Oil and Mining Services formulations are recognized globally for complying with rigorous environmental regulations. In 2022, Clariant Oil Services was named a finalist in Chemical Week’s Innovation Awards for its PHASETREAT WET solution. The product was selected for its novel delivery system, which has a significant impact on sustainable, offshore operations with optimized logistics and dose rates reducing carbon emissions. Furthermore, the business unit was named a finalist in five categories of the 2022 World Oil Awards. The industry awards program honors the best upstream technologies and achievements and celebrates the development of exceptional solutions. Most notably, Clariant was recognized in the Health, Safety, Environment/Sustainable Development Offshore and Onshore Award categories, which are awarded to companies that have made significant strides in protecting and enhancing the environment and communities where they operate.

Ongoing developments

Clariant has extended the existing renewable raw material mass balance certification REDCert² with the International Sustainability and Carbon Certification (ISCC PLUS) for Exolit® OP Terra flame retardants and Licocene® Terra waxes and polymers.

Natural drying is at the core of Clariant’s AdsorbentsAdsorbentsUsually solid substances which are able to selectively accumulate certain substances from adjacent gaseous or liquid phases.View entire glossary business’ climate-neutral and sustainable operations program. In 2022, the AdsorbentsAdsorbentsUsually solid substances which are able to selectively accumulate certain substances from adjacent gaseous or liquid phases.View entire glossary business continued to reduce fossil-fueled thermal drying of bentonites by expanding its natural-drying capacity at several sites in Asia and Europe. This resulted in substantial and sustainable CO₂ reductions and significant cost efficiencies through reduced input fuel and maintenance costs. The AdsorbentsAdsorbentsUsually solid substances which are able to selectively accumulate certain substances from adjacent gaseous or liquid phases.View entire glossary business will continue to add natural-drying capacity to further reduce the cost and environmental impact of its operations while preserving or enhancing the quality and consistency of the finished products.

Business Area Natural Resources