Lanxess cuts 1,000 jobs in new restructuring

EUROPEAN PLASTICS NEWS

Published: September 24, 2013 1:51 pm ET
Updated: September 24, 2013 1:52 pm ET

Related to this story

Topics Materials Suppliers

Thermoplastic and rubber materials producer Lanxess AG has announced a major restructuring which will lead to 1,000 jobs being cut at its worldwide operations by the end of 2015. The Cologne, Germany-headquartered group will exit from non-core elastomer and monofilaments businesses in the restructuring, which it hopes will achieve 100 million euros in annual savings.

Lanxess said it is facing challenging markets and has launched the "Advance" program, which involves efficiency improvements as well as the job cuts.

Chairman Axel C. Heitmann said: "We have a strong track record of managing our business in challenging economic environments. We will undertake all necessary steps in order to return to sustainable and profitable growth as soon as possible. We are seeing first signs of stability in the market but it is too early to say when and how quick a recovery will take hold."

The main efficiency focus for Lanxess is in its rubber-related businesses. It has already restructured parts of its rubber chemicals business unit and is closing a site in South Africa and downsizing its operations in Belgium.

In the latest announcement, Lanxess said it is "pursuing strategic options" for three non-core activities: the High Performance Materials (HPM) business unit's Perlon-Monofil business line, Rubber Chemicals' (RUC) accelerators and antioxidants business lines, and High Performance Elastomers' (HPE) nitrile butadiene rubber business line.

The affected sites are in Brunsbuettel and Dormagen, Germany; Kallo, Belgium; Bushy Park, S.C.; Jhagadia, India; La Wantzenau, France; and Nantong, China.

"All options for these sites will be considered in line with legal frameworks and local employee participation," Lanxess said.

These non-core activities have combined sales of approximately 500 million euros, and about 1,000 employees.

In addition to the cuts, Lanxess will reduce its capital expenditure to about 600 million euros in 2013. But the group said that it will continue with three important investment projects: a neodymium polybutadiene rubber (Nd-PBR) plant in Singapore; an ethylene propylene diene monomer (EPDM) rubber plant in China; and a polyamide plant in Belgium.


Comments

Lanxess cuts 1,000 jobs in new restructuring

EUROPEAN PLASTICS NEWS

Published: September 24, 2013 1:51 pm ET
Updated: September 24, 2013 1:52 pm ET

Post Your Comments


Back to story


More stories

Image

Asahi Kasei breaks ground on Alabama compounding plant

September 29, 2014 5:39 pm ET

Asahi Kasei Plastics North America will be able to solve two problems at once with a new compounding plant in Athens, Ala.    More

Image

DuPont shifting Teflon production in China

September 29, 2014 2:35 pm ET

DuPont Co. will spend more than $15 million to improve its fluoropolymer product offerings in China.    More

Image

Sale of PVC maker Oltchim still in limbo

September 29, 2014 10:25 am ET

Fresh attempts to privatize insolvent Romanian PVC producer Oltchim SA have met with new obstacles as the European Union questioned the Romanian...    More

Image

LyondellBasell considering another ethylene expansion

September 25, 2014 1:30 pm ET

Materials giant LyondellBasell Industries — with three ethylene expansions already on the board — is contemplating a fourth.    More

Image

PE, PVC prices rise, PS on the decline

September 24, 2014 4:16 pm ET

North American commodity resin prices bounced around in September, with regional polyethylene and PVC prices increasing while prices for solid polysty...    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events