02.09.2009

LANXESS completes acquisition in China

 

Shanghai – German specialty chemicals group LANXESS has successfully completed the acquisition of the chemical businesses and production assets belonging to China’s Jiangsu Polyols Chemical Co. Ltd. The transaction has received the necessary anti-trust approvals, and took legal and economic effect on September 1, 2009. The acquisition price for Jiangsu Polyols will remain undisclosed.

 

The transaction complements the portfolio of LANXESS’s business unit Basic Chemicals, which is one of the leading manufacturers of raw materials for agrochemicals, polymers, surface coatings, and pigments. 

 

“This acquisition in China is a further milestone in our company’s long-term growth strategy in the BRIC countries,” said Axel C. Heitmann, Chairman of LANXESS’ Board of Management. “We will start to integrate this business into our group and warmly welcome the new employees into the LANXESS family.”

“Even at a time of worldwide economic recession, LANXESS is focusing on external growth to enhance its position in the dynamic Chinese market,” said Martin Kraemer, CEO of LANXESS Greater China.  “And we will continue to scan the market for partnerships as well as interesting assets to optimize our operations in China.”

 

Jiangsu Polyols achieved sales of about EUR 10 million in 2008 and currently employs some 170 staff at its facility in Liyang, west of Shanghai. It mainly produces trimethylol propane (TMP) that is used in lubricants, paints, and coatings. LANXESS’s business unit Basic Chemicals is already a major supplier of TMP in China and the Liyang facility is going to support growth especially in the Chinese market.
 
LANXESS also announced today that it has completed the acquisition of the chemical businesses and production assets belonging to Indian company Gwalior Chemical Industries Ltd. LANXESS is paying EUR 82.4 million - including debt - for the assets. Gwalior is one of the largest Indian producers of benzyl products and one of the leading global producers of sulphur chlorides for the agrochemicals and pharmaceuticals as well as for the flavor and fragrance industries

 

LANXESS is a leading specialty chemicals company with sales of EUR 6.58 billion in 2008 and currently 14,335 employees in 23 countries. The company is represented at 44 production sites worldwide. The core business of LANXESS is the development, manu¬facturing and marketing of plastics, rubber, intermediates and specialty chemicals.

September 2, 2009

Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

 

Information for editors:
You can find further information concerning LANXESS chemistry in our WebMagazine at http://webmagazine.lanxess.com.

 

All LANXESS news releases and accompanying photo, video and audio material can be found at http://press.lanxess.com.