Tear Sheet: Clariant AG

This report does not constitute a rating action. Clariant's investments have helped to reduce its dependency on cross-border trade and increase local-for-local production. This is notably the case in China, where we expect Clariant to double its share of local production to about 70% by 2026 from 35% in 2021. We expect the direct effects of tariffs to be limited thanks to Clariant's high share of local sourcing of 80%-90% in its major markets and its resilient cost pass-through and value-pricing strategy in its largely specialty portfolio. However, the secondary effects are likely to suppress demand for Clariant's products. Specifically, we forecast that revenue growth will be broadly flat in 2025, including an adverse currency impact due to a stronger

...August 27, 2025 This report does not constitute a rating action. Clariant's local-for-local production and procurement strategy largely mitigates the direct effects of U.S. tariffs, but secondary effects will dent demand. Clariant's investments have helped to reduce its dependency on cross-border trade and increase local-for-local production. This is notably the case in China, where we expect Clariant to double its share of local production to about 70% by 2026 from 35% in 2021. We expect the direct effects of tariffs to be limited thanks to Clariant's high share of local sourcing of 80%-90% in its major markets and its resilient cost pass-through and value-pricing strategy in its largely specialty portfolio. However, the secondary effects are likely to suppress demand for Clariant's products. Specifically, we forecast that revenue growth will be broadly flat in 2025, including an adverse currency impact due to a stronger Swiss franc. Marginal growth in the Care Chemicals and Adsorbents...

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