Lanxess's textile processing unit decline in Europe & Americas, Q2
26 Aug '05
6 min read
The package comprises the closure of smaller sites and the consolidation of unprofitable facilities in the Inorganic Pigments (IPG), Leather (LEA), RheinChemie (RCH), Technical Rubber Products (TRP) and Textile Processing Chemicals (TPC) business units, and the related service functions. The main focus of these measures is on the United States and Europe. Some 450 positions will be eliminated. LANXESS estimates the total one-time charges associated with this program at approximately EUR 100 million through 2008.
Second phase of restructuring The newly announced restructuring measures relate mainly to the following business units and locations: Technical Rubber Products (TRP): The goal in this business unit is to streamline the manufacture and marketing operations of the nitrile butadiene rubber (NBR) business. Some EUR 150 million has been invested in this business over the past decade, yet losses of roughly EUR 200 million were incurred in the same period. The reorganization will focus on the production site at La Wantzenau, France.
Leather (LEA): Plans call for an increase in the efficiency of global administration and production activities.
Inorganic Pigments (IPG): The production site for yellow pigments at New Martinsville, West Virginia, United States will be closed.
RheinChemie (RCH): The U.S. site at Trenton, New Jersey, which has been operating below capacity for years, will be closed.
Textile Processing Chemicals (TPC): The loss-making site at Wellford, South Carolina, United States will be closed.
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