Chemical Specialties – FoamPartner and
Schmid Rhyner

The Chemical Specialties segment (FoamPartner and Schmid Rhyner) generated net revenue of CHF 122.8 million (previous year: CHF 181.4 million). On a comparable basis, net revenue was down 20.2% on the previous year. A divestment gain of CHF 48.1 million resulted from the disposal of the Schmid Rhyner business unit as per the end of February 2020. Without this one-off effect, the operating result amounted to CHF 1.7 million (CHF 8.6 million) with an EBIT margin of 1.4% (4.8%). The FoamPartner business unit also had to temporarily close down various production sites in China, Europe and the USA due to the pandemic. Revenue in all market segments and regions was down on the previous year despite additional revenue with cleaning and hygiene products and products for medical-related uses. Production shutdowns in the automotive industry had a particularly adverse impact. The mobility market segment’s share of revenue (excluding the divested Schmid Rhyner business unit) amounted to 48% as of mid-year 2020 following the disproportionate 35.2% decline in revenue in the first half of the year, compared with 55% at the end of 2019.

During the reporting period, progress was made in the implementation of ongoing efficiency measures, innovation projects and modernization of management processes. The new converting center with additional capacity in Duderstadt was commissioned on time in April and the Stadtallendorf site was closed as of June 30. 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. With RegiSeal® e-Thermo, a new solution for electric mobility was presented that reduces energy consumption and extends the range of the vehicles thanks to improved insulation. A further innovation for vehicle interiors is the OBoNature™ product family manufactured using sustainable raw materials, which enables an efficient and resource-saving processing while creating an improved interior climate.

Under the keywords “Planet, People, Performance,” FoamPartner is preparing the formalization of a comprehensive sustainability concept, which will be communicated in the second half of the year and will serve as a basis for the further development of business activities and sharpening of the market presence. In the first half of the year, the continued modernization of management processes included business excellence programs at various sites, for instance for the improvement of material yield and of further digitalization. IT systems for improved resource planning and customer management were also introduced.