Oerlikon finalized the sale of its natural fibers businesses to the Jinsheng Group of China. The agreement to divest the Natural Fibers and Textile Components Business Units was signed on December 3, 2012. Oerlikon expects from the transaction a net cash impact of around CHF 470 million ($495mn) after transaction and tax costs. Oerlikon will focus on the manmade fiber business and has renamed the Textile Segment the Manmade Fibers Segment.
"The closing of this transaction marks an important milestone in the reshaping of our portfolio, and it further strengthens our financial profile for investments in organic and inorganic growth opportunities," says Oerlikon CEO Jürg Fedier. "The new Manmade Fibers Segment is the global leader in an attractive, growing and less cyclical market."
Oerlikon's Natural Fibers and Textile Components Business Units had sales of around CHF 1.0 billion ($1.05bn) in 2012 and roughly 3,800 employees. The closing of the transaction marks the latest strategic milestone in shaping Oerlikon's portfolio by significantly reducing the group's overall exposure to the textile industry.
With this exit from the natural fibers business, Oerlikon's Textile Segment is renamed the Manmade Fibers Segment. Marketed under the Oerlikon Barmag and Oerlikon Neumag brands, Oerlikon provides solutions and services for the production of manmade fibers, nonwovens, carpet yarns and synthetic staple fibers and is the global market and technology leader in this market.
Stefan Kross has been appointed CEO of the Manmade Fibers Segment with immediate effect. Kross started his Oerlikon career in 1990 and has held a number of senior management positions in the Textile Segment. His latest position was head of the Manmade Fibers Business Unit.
"Stefan and his team will build on their successes in the manmade fibers business with a focus on innovation, customer satisfaction and value creation," says Jürg Fedier.
Clement Woon, CEO of the former Textile Segment, will leave the Oerlikon Group. "We sincerely thank Clement for his contribution and effort to strategically develop Oerlikon's textile business and we wish him all the best for the future," Fedier says.