Keywords
Citation
(2000), "Former performance Polymers Division of Ciba Specialty Chemicals becomes independent company", Circuit World, Vol. 26 No. 4. https://doi.org/10.1108/cw.2000.21726dab.018
Publisher
:Emerald Group Publishing Limited
Copyright © 2000, MCB UP Limited
Former performance Polymers Division of Ciba Specialty Chemicals becomes independent company
Former performance Polymers Division of Ciba Specialty Chemicals becomes independent company
Keyword Ciba
On 5 June 2000, Vantico began operating as a global leader inproviding solutions in the field of innovative coatings, structural composites, adhesives, tooling materials, and electrical and electronic insulation, utilising thermosetting polymers for the automotive, electronic, electrical, aerospace and consumer-durable industry. The company was created through a spin-off and management buy-in/buy-out of the Performance Polymers Division of Ciba Specialty Chemicals, backed by Morgan Grenfell Private Equity (MGPE). MGPE will continue to act as the financing partner for Vantico, providing private equity financing and financial advice.
The new chief executive officer is Edward A. Wilson. Prior to joining the company, he served as a senior executive manager in a variety of positions at Dow Chemical and Koch Industries.
With more than 3,000 employees and sales of CHF 1.7 billion in 1999, Vantico is one of the leading companies in the specialty chemicals industry. CHF 844 million (49 percent) of sales in 1999 were generated in Europe, CHF 499 million (29 percent) in North America and CHF 386 million (22 percent) in Asia achieving an EBITDA margin (earnings before interest, taxes, depreciation and amortisation) of 10 percent of sales. The company operates 18 production facilities in all continents. Major production sites are at Monthey (Switzerland), Duxford (UK), Bergkamen (Germany), Pamplona (Spain), Mclntosh (USA), East Lansing (USA) and Panyu (China). Vantico has sales activities in more than 30 countries.
Future organisational set-up and products
Vantico is organised in three global divisions, each with the responsibility to manage and develop their businesses globally through full profit and loss accountability.
The Adhesives and Tooling Division achieved 17 percent of Vantico's sales in 1999, supplying most manufacturing industries with particular emphasis on the automotive and aerospace sectors. It markets the well-known Araldite1 high performance engineering adhesives used industrially and also used in private households. Tooling brands include Ureol1, Ren1 and Parts In Minutes1 providing customers with a uniquely wide range of plastic tooling solutions.
The Electronic Polymers Division contributed 23 percent of Vantico's sales in 1999 producing insulation systems for the electrical and electronics industry. Products such as Probimer1 and Probimage1 systems are provided to manufacturers of printed wiring boards. Araldite1 products for the insulation of power generation equipment enable utility companies to manage energy reliably even in hostile climates and environments.
The Polymer Specialties Division focusing on coating systems, construction chemicals and structural composites for the aerospace, automotive, recreational equipment and other industries contributed 60 percent of the company's sales in 1999. The product range of this division includes renowned brands such as Araldite1, Kerimid1 and Matrimid1.
Strategic focus: growth with innovative solutions
Vantico will improve and enlarge its product portfolio by supplementing it with new materials in order to open new opportunities especially in fast growing markets such as flat liquid crystal displays and advanced document and media security. The company will continue to spend around 3 percent of sales on research and development. This investment also enables Vantico to continually enhance its solutions capability in advanced tooling and structural bonding.