Atofina to reorganise chemicals branch
Atofina, the chemicals branch of French petrochemicals company Total, is to undergo a far-reaching structural reorganisation to make it better able to cope with the current difficult global climate of strong competition and weak demand.
Atofina, the chemicals branch of French petrochemicals company Total, is to undergo a far-reaching structural reorganisation to make it better able to cope with the current difficult global climate of strong competition and weak demand.
Thirteen of the company's business units are to be hived off into a new, self-sufficient entity, which will bring together the assets of chlorochemicals, intermediates and performance products. The move will recognise the specific economic and industrial features of the chemical intermediates and specialities businesses, said Bernard Boyer, vice president, corporate strategy, acquisitions and divestitures. The new entity has been dubbed CIP in the interim, and a permanent name is currently being sought.
CIP will have reduced but more focused support activities, and the reorganisation will entail the lost of 132 jobs, of which 95 will be at the head office in Paris and 37 at the technical centre in Lyons. It will be run by Thierry Le Henaff, a member of the executive committee of Atofina in charge of agrochemicals, fertilisers and thiochemicals. He also oversees international affairs, purchasing and research.
The initial stage will be to establish the new entity and this is expected to be complete by the beginning of October. Once the business is up and running, the priority will be to improve efficiency and profitability, prior to a probably spin-off out of the Total group within two to three years.
CIP will have sales of around €5bn, placing it among the major players in the chemical intermediates sector. It will be built around a consistent portfolio of integrated activities, benefiting from a global size and positioned to take take advantage of market op-portunities, according to Boyer.
As an independent company it will offer an oppor-tunity to contribute to the consolidation of the chemical industry, he added. 'But It needs to be financially sound enough to contribute to consolidation by acquiring others, rather than as an acquisition target itself,' Boyer stressed.