- Closure follows operational shortfalls and continued losses.
- Restructuring costs and provisions: CHF 60-90 million in 2023, CHF 110-140 million in 2024.
- EBITDA impact: CHF 570-600 million for 2023, down from CHF 650-700 million.
- Additional costs for technology licenses: CHF 10-15 million in 2024.
Closure Decision
Clariant has decided to shut down its sunliquid® bioethanol plant in Podari, Romania, and downsize related activities in Germany. This decision follows a strategic evaluation initiated in July 2023, after the plant failed to meet targeted operational parameters.
Financial Impact
The closure will result in restructuring costs and provisions of approximately CHF 60-90 million, impacting EBITDA in December 2023. Additionally, further impacts of around CHF 110 million will affect EBIT, including a non-cash impairment to the current asset value of the Podari plant and other remaining assets. These amounts will be reflected in the full year 2023 results, to be announced on 29 February 2024.
Future Costs
Clariant anticipates a cash impact relating to the closure costs of approximately CHF 110-140 million in full year 2024. Additional costs of maintaining required capabilities related to the technology licenses are expected to be CHF 10-15 million in 2024.
EBITDA Guidance
As a result of the closure, Clariant has adjusted its EBITDA guidance for the full year 2023 to CHF 570-600 million, down from the previous expectation of CHF 650-700 million.
