Elementis to review Chromium business amid efficiency drive
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Elementis has announced a strategic review of its Chromium business, opening up the possibility of a partial or full divestment from the transition metal.
The company is looking to boost its efficiency with 90 per cent of its revenues coming from other sectors such as personal care, coatings and Talc.
Chromium is a grey, lustrous and brittle metal, valued for its high corrosion resistance and hardness.
Stainless steel and chrome plating represent 85 per cent of its commercial use.
However, the raw material specialists are weighing up whether their business can still maximise the metal’s potential.
Elementis revealed its review of Chromium as part of its first quarter results, where it reported a seven per cent increase in revenues on a year-on-year basis.
This was driven by raising prices and continued demand recovery in personal care, which improved materially as social restrictions eased further.
Higher prices and an improved mix more than offset lower volumes linked to supply chain disruptions and weaker industrial activity in China, alongside cost inflation concerning materials, energy and logistics.
Across the business, margins remained robust, with coatings revenue elevated compared to same period last year.
Its Talc business has also been supported through successful pricing actions, although performance declined year-on-year weaker European vehicle production, and a strike throughout the first quarter at its main paper customer in Finland.
The company is aiming to deliver $50m of new business opportunities, 20 new products and provide $10m of efficiency savings by the end of next year.
Chief executive Paul Waterman believes the company is on-track to reach these goals.
He said: “We have made a good start to the year and will continue to maintain our focus on self-help actions and effectively managing the challenging external supply chain environment, demand uncertainties and rising inflation.”