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Dec 06, 2023 12:05 EEST
December 6 (SeeNews) - Switzerland-based specialty chemicals company Clariant said on Wednesday that it has decided to shut down its bioethanol production plant in Podari, Romania, and to downsize related activities of the business line Biofuels & Derivatives in Germany.
The decision came after a strategic evaluation of the plant's operations, which revealed that it was not meeting Clariant's targeted operational parameters, the company said in a press release.
You can download the 2023 Renewable energy in Romania report here
Clariant concluded that continued losses and the need for significant additional capital expenditure made it economically unviable to continue ramping up the plant.
The closure will result in restructuring costs and provisions of up to 90 million Swiss francs ($102.8 million/95.3 million euro) in December 2023, impacting EBITDA. Clariant also anticipates a cash impact relating to the closure costs of up to 140 million Swiss francs in 2024. Additional costs of maintaining required capabilities relating to the technology licenses of up to 15 million Swiss francs are anticipated in the coming year.
The company said it will work closely with employee representatives in Romania and Germany to find socially responsible solutions for those affected by the closure.
Clariant was formed in 1995 as a spin-off from Sandoz. Headquartered near Basel, the company employed over 11,148 globally at end-2022. Clariant inaugurated the Podari plant at the end of May 2022 and started production there in June of same year.
(1 CHF=1.05869 euro)
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