Sarna Consider Divesting Automotive Polymers Group

The Board of Directors of Sarna Polymer Holding Inc. is reviewing the dual strategy with the concentration on high-quality polymer membranes in the construction industry (Sarnafil Division) and on parts and modules for the automotive industry (Sarnamotive Divisions). Especially it is being examined whether the potential of the automotive business can be exploited faster and more efficiently with partnerships or through a divestment.

After six months in its new composition, the Board of Directors of Sarna Polymer Holding Inc. has decided to review the existing dual strategy and work on scenarios for the successful future of both corporate business sectors. In this way, the Board of Directors wants to safeguard and further increase the high profitability and growth potential of the Sarnafil Division in the long term, as well as to push ahead with the current restructuring and new positioning of the automotive sector.

The Board of Directors is convinced that the European and American automotive business, with its consistent orientation towards niche products with strong growth, as well as the gradual transfer of production to lower cost countries, is well positioned. It is being examined whether the potential of the automotive sector can be exploited faster and more efficiently with partnerships or through a divestment.

Fritz Studer, Chairman of the Board of Directors, says: “The dual strategy only makes sense if it creates long-term value for all our stakeholders customers, shareholders, employees and suppliers. Today, both sectors represent more value individually than together. It is important to exploit the potential more efficiently. Consequently, different possible scenarios are being examined, from continuation of the dual strategy with new partners for the automotive business, via trimming the portfolio by a partial divestment of the automotive business, to focussing on the core business of the successful Sarnafil Division.”

For more information on materials used in automotive applications, click here.

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