Strong growth and profitability, increasing Renewables

In the first half of 2021, orders, sales and profitability increased in the Chemtech (CT) division compared to the same period a year ago. The division is well–placed to expand its leading position in Chemicals and to foster its Renewables business, taking advantage of the attractive growth potential in these markets.

Note: If not otherwise indicated, changes from the previous year are based on currency-adjusted figures.

Two thirds of Chemtech’s business in Chemicals and Renewables

Today, around two-thirds of Chemtech’s business comes from the fast-growing chemicals and renewables markets. Having demonstrated its resilience during the pandemic, Chemtech is well-positioned to take advantage of opportunities in these markets and offers solutions to some of society’s pressing problems. The renewables market is continuously gaining momentum as the world accelerates its shift towards sustainability.

Accelerating growth into Renewables and bio-based applications

Our equipment and proprietary process technologies enable the efficient production of clean and renewable fuels, chemicals, biopolymers, food, fragrances and pharmaceuticals, while helping our customers to save energy, reduce emissions, and minimize waste.

For example, Chemtech is the market leader in the production of polylactic acid (PLA), the most commonly used degradable bioplastic in the world. Sulzer expects the market for PLA to more than double in the next five years as the world increasingly turns to renewable bioplastics. Chemtech’s technologies also enable circularity and carbon reduction. In the first half of 2021, Chemtech announced its partnership with Blue Planet to reduce CO₂ from a variety of industrial activities, including power, steel, cement, refining and other CO₂ emitting industries. Chemtech is developing a highly specialized carbon capture unit that will form a key part of Blue Planet’s solutions. The technology can be used to sustainably transform these industries by sequestering CO₂ emissions in a solid form to be used in other applications — for example to create carbon-neutral or carbon-negative concrete.

Our strategic focus on Chemicals and Renewables is presenting great opportunities for Sulzer. In the first half of the year, orders, sales and profitability increased, thanks to strong execution and a well-managed recovery following lockdowns.
Torsten Wintergerste, Division President Chemtech

Key figures Chemtech (January 1 – June 30)

millions of CHF	2021	2020	Change in +/–%	+/–% adjusted 1)	+/–% organic 2)
Order intake	353.9	319.4	10.8	12.8	12.8
Order intake gross margin	30.3%	30.5%
Order backlog as of June 30/ December 31	458.2	396.9	15.4
Sales	305.6	287.8	6.2	7.7	7.7
Operating income (EBIT)	21.1	10.6	99.1
Operational profit	27.7	23.0	20.3	20.2	20.2
Operational profitability	9.1%	8.0%
Employees (number of full-time equivalents) as of June 30/ December 31	3’536	3’221	9.8

1) Adjusted for currency effects.

2) Adjusted for acquisition and currency effects.

Order intake growing across all regions

Chemtech’s order intake increased by 12.8% in the first half of the year. This increase was supported by growth in all regions as markets continued to recover from the adverse effects of the pandemic.

The Americas region grew 26.0%, while orders in Europe, the Middle East and Africa increased 25.6%. Asia-Pacific achieved further growth of 3.2% in the first half of the year, following a significant increase of 14.7% in 2020.

Order intake by segment

Order intake by region

Higher sales and operational profitability

In the first six months of 2021, sales increased by 7.7%, supported by a healthy order backlog at the start of the year and rapid factory ramp-up in Chemtech’s facilities following lockdowns.

Higher sales and the successful implementation of structural cost savings led to a significant increase in operational profitability from 8.0% to 9.1%.