15.12.2009

LANXESS streamlines global production network

 

• Divestment of Chinese joint venture stake and U.S. site

 

Leverkusen/Shanghai, December 15, 2009 – LANXESS AG has taken further steps to streamline its global production network and thus reduce operating costs in the face of the economic crisis and competitive business environment.

 

The specialty chemicals group has sold its 55 percent stake in the hydrazine hydrate joint venture LANXESS Yaxing (Weifang) Chemicals Company Ltd. to its Chinese partner Weifang Yaxing Group. The joint venture was founded in September 2004 and is based in the Weifang Industry Park in Shandong province, China. Both parties have agreed not to disclose financial details.

 

LANXESS will continue to produce hydrazine hydrate at its Leverkusen plant in Germany and is committed to providing a regular and long-term supply to its customers worldwide. Weifang Yaxing Group will continue to operate the assets after LANXESS’ exit.

 

In addition, LANXESS Corporation has sold the infrastructure and supporting services at its site in Bushy Park, South Carolina, U.S., to the investment company Cooper River Partners, LLC, for 10 million USD.

The company’s Rubber Chemicals business unit will continue to manufacture at the site and has reached a long-term lease and service agreement with Cooper River.

 

LANXESS recently announced its Functional Chemicals business unit will transfer its colorants production from Lerma, Mexico, to its existing facility in Leverkusen, Germany, in the coming months. LANXESS also sold its remaining shareholding in the acrylonitrile butadiene styrene (ABS) joint venture to its partner INEOS in September, thus completely exiting the ABS business in 2009 as planned.

 

These measures run parallel to the company’s “Challenge09-12” program that has been implemented since the start of the year to help mitigate the effects of the crisis. In this way, LANXESS will cut costs worldwide by about EUR 360 million by 2012.

LANXESS is a leading specialty chemicals company with sales of EUR 6.58 billion in 2008 and currently around 14,600 employees in 23 countries. The company is represented at 46 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.

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:

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Information on chemical products from LANXESS can also be found in our Web Magazine at http://webmagazine.lanxess.cn.