Clariant sees demand down 16-20 pct in 2009 -paper

* CEO says demand to stay such levels for next 2 yrs

* More job cuts to come in 2009, 2010

* Satisfied with operating results

ZURICH, July 11 (Reuters) - Swiss speciality chemicals company Clariant (CLN.VX) expects demand to be between 16 and 20 percent lower in 2009 than last year, the group's chief executive was quoted on Saturday as saying in an interview.

"I expect that we will stay at this level for more than two years," CEO Hariolf Kottmann told Swiss newspaper Finanz und Wirtschaft.

Demand in the second quarter was slightly better than in the first, Kottmann said, adding that the bottom had been reached, but he cautioned a recovery would be slow as the decline had been so sharp.

Clariant, which makes pigments for products from textiles to cars, posted a first-quarter net loss in May, stung by a slump in demand for its products, but said at the time it saw signs of improvement in coming quarters. [ID:nL6500959]

The group has said it would have to adjust capacities to lower sales levels and Kottmann repeated there would be more job cuts in 2009 and 2010.

Last month, the group said it would cut 500 jobs, coming on top of the 1,350 cuts announced at the start of the year. [ID:nLM78195]

But Kottmann said he was satisfied with the development of operating results.

"All divisions are in the black. We have a very pleasing June behind us. I would be disappointed if we would not post earnings before interest and tax before extraordinary items of 15-18 million Swiss francs ($13.8 million-$16.6 million) every month in the near future," he said.

The group's cashflow was also likely to remain strong in the next few months or even quarters as it reduces its inventory, Kottmann said. He added that most of the cashflow from the next quarter onwards would, however, be generated through operating income thanks to lower costs. (Reporting by Katie Reid, editing by Anthony Barker)