Lanxess's textile processing unit decline in Europe & Americas, Q2
26 Aug '05
6 min read
Said Heitmann: "The extensive restructuring in the United States will boost our competitiveness in a market that is very important for LANXESS." US sales account for about 20 percent of the Group total. LANXESS currently has 15 sites there, 10 of which house production facilities. About 2,100 people work for LANXESS in the US.
First phase of restructuring on schedule Implementation of the savings program presented at the beginning of June for the company's two biggest loss-makers, the Styrenic Resins and Fine Chemicals business units, is proceeding to schedule.
In Styrenic Resins, new appointments have been made to key global management positions. The carve-out of the Fine Chemicals business unit into an independent, medium-sized company under the umbrella of the LANXESS Group is due to be completed by the end of the first quarter of 2006. The company will be headquartered in Leverkusen and will employ about 1,350 people worldwide. Two production units have been closed as part of the reorganization already initiated. The fine chemicals production operation at Murcia, Spain, is to be relocated to Leverkusen.
Second-quarter performance by segment
Sales of the Performance Rubber segment grew by more than 17 percent to EUR 432 million (Q2 2004: EUR 368 million), mostly due to price increases. Volume sales also increased thanks to heavy demand for rubber. EBITDA pre exceptionals climbed by nearly 43 percent to EUR 70 million (EUR 49 million). The EBITDA margin pre exceptionals improved by 2.9 percentage points to 16.2 percent.
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