Lanxess AG plans to close one of its two European styrenic resin plants to make the firm more competitive.
In an April 11 news release, officials with the Leverkeusen firm said they are analyzing plants in Dormagen, Germany, and Tarragona, Spain, before deciding which will be shut down. Both sites make ABS and various specialty styrenics, and Dormagen operates other chemical lines as well.
The firm described the economic condition of the styrenics business - as well as Lanxess' fine-chemicals business - as ``unsatisfactory.'' Lanxess also plans to close a fine-chemicals plant in Leverkeusen. The moves are expected to yield annual savings of 100 million euros ($129 million).
Officials began discussions with employees of the affected plants April 11. No deadline for the decision was announced.