Chemical Specialties – FoamPartner

The Chemical Specialties segment (FoamPartner and Schmid Rhyner) generated net revenue of CHF 264.0 million in 2020 (previous year: CHF 346.6 million). On a comparable basis, i.e. adjusted for changes in the scope of consolidation and at stable exchange rates, revenue declined by 9.0%. A divestment gain of CHF 47.4 million resulted from the sale of the Schmid Rhyner business unit at the end of February 2020. Without this one-off effect, the operating result amounted to CHF 14.8 million (CHF 14.2 million) with an EBIT margin of 5.6% (4.2%). In the first half of the year, the FoamPartner business unit had to temporarily close various production sites in China, Europe and the USA due to the pandemic. As far as customers were concerned, the adverse effects of temporary production shutdowns in the automotive industry were particularly relevant. In the second half of the year, and despite additional challenges due to production disruptions experienced by suppliers of isocyanates and polyols, the business recovered from the mid-year pandemic-induced slump. Revenue continued to increase across the board in all regions and was, at stable exchange rates, 9.8% higher in the fourth quarter than in the fourth quarter of 2019.

The impact on results from the decline in revenue at FoamPartner was mitigated through disciplined cost management, including recourse to assistance packages, selective organizational adjustments and accelerated process digitalization. The progress made with the infrastructure and innovation projects commenced before 2020 also provided structural benefits in terms of the earnings situation. The new converting center with additional capacity at the German facility in Duderstadt was commissioned on time in April and the Stadtallendorf site was closed as of mid-year. Both, the production and storage areas, were extended at the Changzhou site in China in order to significantly improve logistics processes and enable future growth. The ongoing business excellence programs at the various sites progressed steadily, with the aim of further optimizing foaming and foam processing processes.