Record year with double-digit growth
Note: If not otherwise indicated, changes from the previous year are based on organic figures (adjusted for currency effects, acquisitions and divestitures/deconsolidations).
The Chemtech division continued its strong growth trajectory in 2023, achieving double-digit growth in both order intake and sales. Order intake increased by 10.5%, driven by select large projects and strong fundamentals in its products and components business. Sales grew by 15.5%, with strong profitability across all regions. The division continues to pursue its growth strategy in Renewables, supporting circular manufacturing practices, the use of sustainable materials and efficiency improvements for its customer base.
Expanding biobased technologies and circularity
The Chemtech division continues to invest more than 4% of its revenues in technology and innovation. In 2023, it confirmed its leadership in biopolymers by launching its new CAPSULTM process technology for the manufacturing of polycaprolactone (PCL), a biodegradable polyester, as well as a new licensed technology for the production of polylactic acid (PLA), SULACTM. These two new biopolymer technologies will play a significant role in the reduction of plastic waste. Coupled with the recent soft launch of its clean technology R&D center in Singapore, the division is poised to support rising demand for a more eco-conscious, circular economy of plastic, separation applications and the decarbonization of industries as a whole.
The Chemtech division's wide variety of equipment and process technologies, together with its extensive system integration know-how, is enabling manufacturers worldwide to maximize cost and energy efficiency, secure product quality and reduce emissions. In 2023, the Chemtech division's separation technology enabled the production of high-quality biomethanol in Finland to help industry reduce its greenhouse gas emissions. In Austria, the division's mass transfer technologies and equipment will enable 50,000 tons of CO2 to be captured each year for use in the food and beverage industry, while its separation technology in Belgium is enabling the purification of hard-to-recycle post-consumer plastic for use as chemical feedstock.
Key figures Chemtech
|
millions of CHF |
|
2023 |
|
2022 |
|
Change in +/–% |
|
+/–% adjusted 1) |
|
+/–% organic 2) |
|
Order intake |
|
842.5 |
|
834.9 |
|
0.9 |
|
7.5 |
|
10.5 |
|
Order intake gross margin |
|
33.2% |
|
31.7% |
|
|
|
|
|
|
|
Order backlog as of December 31 |
|
521.2 |
|
501.7 |
|
3.9 |
|
|
|
|
|
Sales |
|
772.5 |
|
739.9 |
|
4.4 |
|
11.3 |
|
15.5 |
|
EBIT 3) |
|
84.9 |
|
38.3 |
|
> 100 |
|
|
|
|
|
Operational profit |
|
95.0 |
|
80.0 |
|
18.7 |
|
28.2 |
|
28.5 |
|
Operational profitability |
|
12.3% |
|
10.8% |
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of December 31 |
|
2’849 |
|
2’852 |
|
–0.1 |
|
|
|
|
1) Adjusted for currency effects.
2) Adjusted for acquisition, divestiture/deconsolidation and currency effects.
3) 2022 was impacted by write-offs related to Russia.
Strong order intake
Orders in the Chemtech division continued a strong growth path, rising 10.5% in 2023. The increase was driven by large orders in the first half of the year, particularly in bioplastics, biofuels and process technologies.
Order intake by market segment
2023
Order intake by region
2023
Rising sales and profitability
Sales also grew by a significant 15.5%, with all of Chemtech’s business units contributing to this substantial growth. The increase was driven by a high backlog, a particularly large order at the beginning of 2023 and strong commercial momentum. Profitability rose by 150 basis points to 12.3%, driven by strong sales growth, a favorable margin mix across the portfolio and ongoing cost discipline.
Safety performance in 2023
Chemtech’s accident frequency rate (AFR) decreased from an already low 0.8 cases per million working hours in 2022 to just 0.34 in 2023. Driven by a robust safety process, the accident severity rate (ASR) also decreased to 3.2 lost days per million working hours, down from a high of 44.0 the previous year.
The Chemtech division participated in a Group-wide “Stop Work" campaign in 2023 that gave stop-work authority to any employee observing a tangible risk of injury.
Abbreviations
EBIT: Earnings before interest and taxes
For the definition of the alternative performance measures, please refer to “Supplementary information.”