Japanese Co AKF to pick Lanxess' Dorlastan fiber business
17 Nov '05
3 min read
Leverkusen based leading chemical company LANXESS has completed the search for a purchaser for its Dorlastan fibers business.
German company LANXESS and Japanese firm Asahi Kasei Fibers Corporation (AKF) widely agreed on the probable text of a sale and purchase agreement for the Dorlastan business and signed a memorandum of understanding.
The agreement itself is expected to be signed shortly. The transaction will be subject to the approval of the relevant antitrust authorities. The parties have agreed not to disclose the purchase price. The Dorlastan Fibers-business includes production facilities at Dormagen, Germany, and Bushy Park, South Carolina, United States.
The deal will mark the implementation of LANXESS's first portfolio adjustment. LANXESS had repeatedly stated that activities that would have better prospects as part of another company are to be placed into partnerships or divested.
To make the site at Dormagen, Germany, competitive a plan for the future has been agreed with AKF including a gradual reduction in employment that will be implemented in a socially responsible manner.
LANXESS Management Board Chairman, Dr. Axel C. Heitmann stated that the Dorlastan fibers business has suffered for many years from the migration of textile markets to Asia. Selling the business to AKF enables LANXESS to avoid closing the Dormagen site, which has been unprofitable for years.
This solution offers future perspectives fora substantial proportion of the workforce. Acquiring the Dorlastan business will enable AKF to strengthen its position as a major manufacturer of synthetic elastic fibers and expand its geographical presence.
marketing@alchempro.com
