– Business review – Chemtech
Strong growth with continued focus on Renewables
Note: If not otherwise indicated, changes from the previous year are based on organic figures (adjusted for currency effects and acquisitions/deconsolidations).
The Chemtech division drove very strong order growth of 25.3% in the first half of 2023, fueled by Asia-Pacific and the Americas. Orders grew strongly in the Renewables segment and broadly across all other businesses. Sales increased 24.3% year-on-year and were supported both by large orders and sound order backlog execution. The division’s operational profitability increased 180 basis points, mainly driven by strong execution discipline and a favorable product mix.
Driving the green transition
With recognized success in biofuels, recycling and carbon capture, the division continues to drive growth through leadership in its separation technologies, maintaining a strong focus on renewables and operational efficiency. The division was acknowledged in NexantECA’s report earlier this year, where its licensed BioFlux® process technology was named one of the top two most cost-effective hydrotreating solutions for producing hydrogenated vegetable oils (HVOs) and/or sustainable aviation fuel (SAF).
As Chemtech expands its strategic focus on the Renewables business, the division's robust performance is also being recognized through its extensive licensing portfolio of technologies. A recent order in China demonstrates Chemtech's comprehensive offering in biobased technologies, with Jindan New Biomaterials utilizing Sulzer’s licensed PLA technology at its new manufacturing plant to produce up to 75’000 tonnes of polylactic acid (PLA) per year, primarily for food packaging, molded goods and fibers production. The PLA will be produced in a variety of grades to support the enhanced use of bioplastics in several sectors in China, including the textile and package manufacturing industries.
Similarly, the division's licensed GT-LPG Max™ technology is supporting Hanwha TotalEnergies Petrochemical (HTC) enhance productivity at its plant in Daesan, South Korea, while also supporting decarbonization at the plant by extracting liquefied petroleum gas (LPG) components to enhance gains from its off-gas flare system.
To support continued customized solutions in separation technologies and process designs, the division also recently announced that it has signed an agreement with JTC Corporation, a government agency under the Ministry of Trade and Industry in Singapore, to build and operate a new research center in Singapore. The center is designed to support clean and sustainable manufacturing in the region and expected to be fully operational in Q2 2024. Chemtech will focus its research activities on chemical separation processes for circular operations such as polymer recycling and bio-based fuel production.
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The division continues to drive growth through its unique positioning in growth markets and its leading separation and purification solutions. Our commitment to innovation is gaining recognition as we invest in technologies for Renewables and expand our licensing businesses.”
Uwe BoltersdorfDivision President Chemtech
Key figures Chemtech (January 1 – June 30)
|
millions of CHF |
|
2023 |
|
2022 |
|
Change in +/–% |
|
+/–% adjusted 1) |
|
+/–% organic 2) |
|
Order intake |
|
504.9 |
|
437.1 |
|
15.5 |
|
21.7 |
|
25.3 |
|
Order intake gross margin |
|
33.1% |
|
29.6% |
|
|
|
|
|
|
|
Order backlog as of June 30 / December 31 |
|
594.8 |
|
501.7 |
|
18.6 |
|
|
|
|
|
Sales |
|
380.9 |
|
342.0 |
|
11.4 |
|
17.8 |
|
24.3 |
|
EBIT 3) |
|
38.1 |
|
–5.3 |
|
n/a |
|
|
|
|
|
Operational profit |
|
44.7 |
|
33.8 |
|
32.2 |
|
41.4 |
|
42.8 |
|
Operational profitability |
|
11.7% |
|
9.9% |
|
|
|
|
|
|
|
Employees (number of full-time equivalents) as of June 30 / December 31 |
|
2’887 |
|
2’852 |
|
1.2 |
|
|
|
|
1) Adjusted for currency effects.
2) Adjusted for acquisition, deconsolidation and currency effects.
3) 2022 was impacted by write-offs related to Russia and Poland.
Strong order intake
Orders increased 25.3% in the first half of 2023, with double-digit growth in Asia-Pacific and the Americas, driven by strong demand for separation technologies and mass transfer components. Orders in Europe, the Middle East and Africa were lower due to the high comparable base in H1 2022 but were still at healthy levels.
Order intake by market segment
H1 2023
Order intake by region
H1 2023
Increased sales and profitability
Sales in the first half of the year grew by 24.3%, with particularly strong growth in the Americas and Asia-Pacific regions. Operational profitability increased by 180 basis points to 11.7%, reflecting a strong focus on execution and a more favorable product mix.