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

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

BASF pre-tax earnings rise, but will miss financial targets for 2015

October 24, 2014 10:16 am ET

BASF SE has raised its expectations for pre-tax earnings in 2014 but warned that it would not hit its financial targets for next year.    More

Image

Sabic, Shell cancel expansion for SADAF joint venture in Saudi Arabia

October 24, 2014 9:19 am ET

Saudi Basic Industries Corp. and Royal Dutch Shell have cancelled plans to expand an existing petrochemical joint venture in Saudi Arabia following...    More

Image

Sadara CEO says Middle East now has 20 percent of global ethylene capacity

October 24, 2014 9:33 am ET

Sadara CEO Ziad Al-Labban claims that the Middle East's ethylene capacity is now 20 percent of global production.    More

Image

PolyOne increases quarterly profits despite falling sales

October 23, 2014 4:55 pm ET

North American compounding leader PolyOne Corp. saw its third-quarter profit increase, even as sales fell vs. the year-ago period.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

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 analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

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

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