The Oerlikon Group which has recently reorganized its institutional structure divested its Natural Fiber and Textile Components Business Units by transferring them to Chinese Jinsheng Group. It is stated that the reason of this situation is mainly the decreases experienced by Oerlikon in the textile industry. Total sales volume of Oerlikon in textile industry had regressed to 33 % from 53 %. It was specified that the divestment is an important strategic step to optimize and balance these decreases.
Quiting the natural fiber and textile components business units, Oerlikon will focus on the artificial fibers which display a less cyclic and high performance in the new period. The group has an investment of CHF 650 million in this business segment and it is envisaged that it will close by the third quarter of 2013. CEO of Oerlikon, Michael Buscher made an explanation and said: “This business is a milestone in order to balance the portfolio of Oerlikon. This situation will alleviate the effect of the decrease we experienced in the textile sector and balance it and it will enable us orientate towards the artificial fiber business which bring profit to us, our partners, clients and workers and has high margin.”.
With the divestment of the Natural Fiber and Textile Business Units, Oerlikon targets to reduce the negative effects and it also aims at strengthening gradually in the segment of artificial fibers. With a sales volume of CHF 2.0 billion in 2011, the Textile Segment represented 53 % of total sales volume of the Group. In 2011, the business unit had a sales volume of CHF 1 Billion with 3800 employees. After the divestment, the restated share of revenues from the textile sector will be around 33 % of total Group sales.
Group Focuses on Artificial Fibers
With this decision opening a new era for Oerlikon Group, it is expected that the divestment will take place until the 3rd quarter of 2013. This process will proceed with a series of merges between countries and approval of the control decisions. Oerlikon will touch upon the Natural Fiber and Textile Components Business Unit under the title of “Halted Activities” in the report of 2012. Having updated its 2012 financial year guide, Oerlikon achieved a sales volume of 2.7 billion Sweden franc as well as a order level of CHF 2.9 billion. In this context, 2012financial year report will include the following points under the title of “Ongoing Activities”: 5 % increase in sales, catching the figures of previous year in orders, 1 % increase in EBIT margin in comparison to the previous year.
Offering products for many segments in the field of advanced technology in the global arena, Sweden centered OERLIKON has a rooted history of 100 years. Continuing its sales and agency activities at 150 different locations in 38 countries with 17 thousand employees, the Group recorded a sales volume of 4.2 billion Sweden franc in 2011. The same year, the group made an investment of CHF 213 million for R&D activities and it focuses on the technologies of the future by working on this field with 1200 experts.
Oerlikon which will focus on the issue of artificial fibers whose use amounts are increasing day by day will strengthen its position in this business segment growing about 5 % annually on average. Artificial fibers have become indispensable raw materials for especially industrial and technical applications. In other words, automotive and construction industries have a big potential among the industrial applications. Artificial Fibers Business Unit of Oerlikon provides innovative solutions with its brands of Oerlikon Barmag and Oerlikon Neumag.
