LANXESS expands capacity of butyl rubber plant in Belgium
LANXESS will expand the production capacity of its butyl rubber
plant in Zwijndrecht, Belgium, by 10 percent to meet growing
global demand for regular butyl and halobutyl synthetic rubber.
The company will invest EUR 20 million to increase capacity by an
extra
14,000 metric tons
per year. The current capacity of the plant is about 135,000 metric
tons per year.
2010/12/2Lanxess
LANXESS starts up new plant for ion exchange resins in India
* Annual capacity of 35,000 metric tons
* 200 new jobs
* High demand for Lewatit products for water treatment
* Further expansion phase of Jhagadia site successfully completed
* New plant for high-tech plastics to go into operation in
Jhagadia in 2012
Today, specialty chemicals group LANXESS opened Asia’s most state-of-the-art plant for ion exchange resins in India. The new plant was
constructed over a period of two years in the chemical
park in Jhagadia in the Indian state of Gujarat. It boasts an annual capacity of 35,000
metric tons.
Around 200 employees from the Ion Exchange Resins (ION) business
unit manufacture products for industrial water treatment for the
semi-conductor and pharmaceutical industries, the food sector and
the power industry. The opening marked the successful completion
of the second expansion phase in Jhagadia. The first project
phase, which was completed in March of this year, saw a rubber chemicals production
plant
taken into operation. Overall, LANXESS has invested around EUR 50
million in the site to date.
“Demand
for clean water is set to increase by around one-third worldwide
by 2030. In Asia in particular, and in India especially, demand
will grow disproportionately due to rapid population growth and
increasing urbanization,” said Chairman of the LANXESS Board
of Management Axel C. Heitmann at the official opening ceremony,
which was also attended by the State Premier of the Indian state
of Gujarat. “Production has therefore started
at exactly the right time to benefit from this development.”
The new plant was
constructed on an area totaling 30,000 square meters by up to
1,800 workers. Around 5,000 metric tons of steel and 400
kilometers of electric cable were used in the construction of the
approximately 40-meter high production building in a process
requiring nine million working hours. The wastewater is
pre-cleaned in a separate wastewater treatment plant by LANXESS
before it is released into the chemical park’s wastewater system. Huge amounts
have been invested in environmentally friendly energy generation.
LANXESS uses a cogeneration plant for the company’s own power station. This is run
on natural gas. “We are also setting new benchmarks
for sustainable production,” said Heitmann. “In total, around 20 percent of
total construction costs were used for sustainability projects.”
Water treatment
products
With its high-quality Lewatit ion exchange resins, adsorbers and
functional polymers, LANXESS has more than 70 years of experience
and expertise as a one-stop supplier of premium products for
water treatment. The high-tech resins produced there are used in
the fields of water treatment in power generation,
microelectronics, and the drinking water and food preparation
industries. The broad range of applications for these small beads
of resin includes, for example, the decalcification or
desalination of water in dishwashers and the decarbonization or
extraction of heavy metals from drinking water in water filters.
In addition to Jhagadia, LANXESS also produces Lewatit ion
exchange resins at sites in both Bitterfeld and Leverkusen.
Growth market India “India
has become our second strongest growth market in Asia and we will
therefore continue to drive forward expansion in this country in
the next five years,” said Heitmann. According to
forecasts, automobile manufacturing alone is set to rise by
almost one-fifth in 2010 and by around seven percent in the years
up to 2015. The electrical and electronics industries on the
subcontinent are expected to expand by around 10 percent in the
medium term. Overall growth of around eight percent is forecast
for the Indian economy over the medium term.
Further expansion in 2012
The next stage of expansion for Jhagadia is planned for 2012.
From then on, high-tech plastics from the
Semi-Crystalline Products business unit (SCP) will be produced at
a capacity of 20,000 metric tons per year.
Durethan®, engineering plastics
based on polyamide 6 and 66
Pocan®, engineering plastics
based on polybutylene terephthalate
Glass
fiber assortment as reinforcements for plastics
Caprolactam,
ammonium sulfate, adipic acid
Perlon®, Atlas®
and
Bayco®*, Polyamide and
Polyester monofilaments
“India
is preparing to become the third biggest market for engineering
plastics after the United States and China,”
said Heitmann,
adding: “It is therefore logical for
LANXESS to support our fast-growing Indian customer base locally
with high-caliber production.” Global automakers, their suppliers
and numerous international producers of electrical and
electronics goods are already active in India or are investing in
new plants there. Many of these companies are already customers
of SCP.
Production of rubber chemicals
The first construction phase for the new production site was
completed in March 2010 with the start-up of rubber chemicals
production. Since then, the plant has been supplying the
fast-growing Indian tire and rubber industry. LANXESS is also
supplying customers in the rubber, oil and lubricants industries
worldwide with Vulkanox antioxidants from its Indian plant. This
plant makes LANXESS the only Western company producing rubber
chemicals in India.
Total investment of EUR 60 million
Once the new facilities for high-tech plastics production have
been completed, LANXESS will have invested a total of around EUR
60 million in Jhagadia. Jhagadia is thus the second largest
production site in India after Nagda in the Madhya Pradesh
region. At Nagda, where LANXESS’s future competence center for
chlorination and flavorings will be located, the Basic Chemicals
business unit with its 300 or so employees produces specialty
chemicals for the agrochemical industry, pharmaceutical and
coating sectors and fragrance and flavoring industries.
The Ion Exchange Resins and Rubber Chemicals business units are
part of the Performance Chemicals segment, which generated sales
of EUR 1,530 million in 2009.
LANXESS is a leading specialty chemicals company with sales of
EUR 5.06 billion in 2009 and currently around 14,500 employees in
23 countries. The company is represented at 42 production sites
worldwide. The core business of LANXESS is the development,
manufacturing and marketing of plastics, rubber, intermediates
and specialty chemicals.
2010/12/9
LANXESS: Largest Leather
Chemicals investment in China ever
New
plant at Changzhou Yangtze Riverside Industrial Park
Capacity
of up to 50,000 metric tons per year
150
new jobs to be created
German
specialty chemicals group LANXESS has taken another step on its
expansion course in China. The company will invest about EUR 30
million in a plant for leather chemicals to be built in
Changzhou, Jiangsu province江蘇省常州市, China. This is the single
largest investment by the company’s Leather Chemicals business unit
to date in China. Approximately 150 new jobs will be created
through this investment.
The
facility, with an annual capacity of up to 50,000 metric tons, will be located at the Changzhou
Yangtze Riverside Industrial Park. It is planned to go on stream
by the first half of 2013 and will produce premium LANXESS
leather chemicals for the local Chinese market such as Tanigan,
Isoderm, Euderm and Levotan for various applications like leather
tanning, dyeing and finishing. Tanigan is
a range of synthetic tannins ISODERM is a family of
nitrocellulose top coats for leather Euderm is a range of finishing
auxiliaries that are used in finishing of leather Levotan is a range of polymeric
softening and retanning agents for leather
"China
today is the largest market for leather chemicals worldwide, with
steady growth expected," said LANXESS CEO Axel C. Heitmann
at a press conference in Changzhou. "This new investment
also underlines our successful strategy of focusing on the
booming BRIC nations, led by China.”
Since
1998, LANXESS has been operating a production site and research
and development center in Wuxi 無錫, Jiangsu
province.
The site produces chemical products for leather processing and
treatment, with an annual output of 30,000 metric tons.
Leather
chemicals are used to optimize the properties of the leather
material such as its softness, water resistance, as well as
ability to conceal minor defects and reduce soiling.
The
Leather business unit is part of LANXESS’
Performance
Chemicals segment. It has approximately 1,100 people worldwide
and production sites in Leverkusen (Germany), Filago (Italy),
Rustenburg, Newcastle and Merebank (all South Africa), Zárate (Argentina), Wuxi (China) and
Madurai (India).
LANXESS is a leading
specialty chemicals company with sales of EUR 5.06 billion in
2009 and currently around 14,500 employees in 23 countries. The
company is represented at 42 production sites worldwide. The core
business of LANXESS is the development, manufacturing and
marketing of plastics, rubber, intermediates and specialty
chemicals.
With a total area of 38
square kilometers, Changzhou New Port Area is located in
the north part of Changzhou National Hi-Tech District and
is about 10 kilometers away from down town. This area
belongs to Alluvial Plain and the elevation is around
3-4.5 meters.
Bordering the Yangtze
River, Changzhou National Hi-Tech District boasts the
golden coastal line of the Yangtze River. By now, along
the 2.2-km-deepwater-front in the east, a general dock
with a berth capacity of 30,000 tons has been completed;
one container dock has been extended. One petrol-chemical
dock and one tank zone are under construction. In the
western part, docks with 1000-ton capacity will be built
in the future. In order to speed up the development of
the New Port Zone and Heavy Chemical Industry Park,
complete infrastructure system has been built. The Water
Plant is available, a Wasted Water Treatment Plant and a
Cogeneration Power Plant are under plan. The New Port
Zone has attracted many international and domestic
investors.
The New Port Area has been
planned with the following six parks: (1) Chemical Industry Park
in the east: about 3 Km2 (2) Chemical Industry Park
in the west: about 3 Km2 (3) Fine Chemical Industry
Park: about 2 Km2 (4) Comprehensive Industry
Park: about 3 Km2 (5) Changzhou
International Environment Protection Industry Park: about
8 Km2 (6) Civil Facility Park:
about 2 Km2 (7) Residential and Town
Area: about 4.3 Km2
2010-12-14
LANXESS to acquire DSM
Elastomers
* LANXESS to strengthen production technology for EPDM
* Important step towards mid-term earnings target
* Future EPDM headquarters to be located in Sittard-Geleen, NL
LANXESS and Dutch company Royal DSM N.V. have reached an
agreement in principle involving the sale of DSM
Elastomers to LANXESS
for EUR 310 million on a cash and debt-free basis. DSM Elastomers
produces the synthetic rubber ethylene propylene diene monomer (EPDM) under the
brand name Keltan.
The price for the
DSM Elastomers business represents an EBITDA multiple of roughly
6 based on the expected EBITDA of 2010. The acquisition will be
financed by LANXESS out of existing liquidity and is expected to
be EPS accretive as of 2011.
The transaction contracts will be finalized once a consultation
process with the employees' representatives of DSM in the
Netherlands has been completed. The transaction is subject to
approval from antitrust authorities. Closing is expected in the
first months of 2011.
“We
look forward to welcoming DSM’s professional EPDM team as well
as its impressive assets to our core synthetic rubber activities,”
said Axel C.
Heitmann, LANXESS CEO. “The transaction will also be an
important step towards our goal of achieving roughly EUR 1.4
billion EBITDA pre exceptionals in 2015.”
Feike Sijbesma,
CEO/Chairman of the DSM Managing Board, said: “The sale of DSM Elastomers
completes our Vision 2010 strategy to become a focused Life
Sciences and Materials Sciences company. This transformation has
been achieved within our desired timeframe and at favorable
conditions for our shareholders and employees. DSM has now
entered a new era focused on driving growth and returns with
enhanced earnings quality and confidence in meeting our
medium-term targets.”
Sittard-Geleen-based
DSM Elastomers has approximately 420 employees worldwide and is
expected to achieve sales of about EUR 380 million in 2010. DSM
operates an EPDM plant in Sittard-Geleen, the
Netherlands,
with an annual production capacity of 160,000 metric
tons. DSM’s other EPDM plant is based in Triunfo, Brazil, with an annual capacity of 40,000 metric tons. LANXESS plans to base the
headquarters of the combined EPDM businesses in Sittard-Geleen.
LANXESS’ Technical Rubber Products business unit (TRP), headed by
Guenther Weymans, sells EPDM under the brand name Buna EP.
LANXESS
produces EPDM in Marl, Germany, and Orange, United States, with a
combined annual capacity of 120,000 metric tons. 2009/7/6 合成ゴム100年
The global rubber
market for EPDM is expected to show single-digit percentage
growth per annum in the next ten years, driven by rising demand
in China and Brazil.
Through the transaction, LANXESS plans to strengthen its
technology base by gaining access to the ACE technology. DSM is in the process of
implementing this technology on a larger scale at its site in
Sittard-Geleen. In comparison to conventional technology, ACE
reduces the energy and production costs for EPDM and at the same
time broadens the application possibilities of the rubber.
LANXESS will evaluate implementing ACE technology into its
existing plants.
26-March-2007
DSM Elastomers, a
business group of Royal DSM N.V., today announced that in
2008 it will start producing specialty EP(D)M’s based on a
worldwide exclusive license agreement with NOVA Chemicals. The agreement further
underlines DSM’s innovation ambitions in its
Performance Materials cluster, which is an important element
of DSM’s strategy Vision 2010 -
Building on Strengths.
Based on NOVA
Chemicals’ proprietary single site
catalyst technology, DSM Elastomers has achieved key
breakthroughs in the area of advanced catalysis technology
that allow for the efficient production of EP(D)M’s with improved properties.
This new technology
will be branded Keltan ACE™. ACE is the acronym for
Advanced Catalysis Elastomers.
“Our
customers will benefit from a wider range of premium EPDM
products,” said Werner Breuers, LANXESS Board
Member.
EPDM is used above all in the automobile industry but also in the
plastics modification, cable and wire, construction and oil
additives industries. Its properties include very low density,
good resistance to heat, oxidation, chemicals and weathering as
well as good electrical insulation properties.
Additional products in TRP’s portfolio include Polychloroprene
rubber (CR), Hydrogenated nitrile rubber (HNBR), Ethylene vinyl
acetate rubbers (EVM) and Nitrile Rubber (NBR). TRP is part of LANXESS’
Performance
Polymers segment, which recorded sales of EUR 2.4 billion in
2009. Apart from Marl and Orange, the business unit has
production sites in Leverkusen, Dormagen (both Germany) and La
Wantzenau (France). The business unit has roughly 1,000
employees.
DSM - the Life Sciences and Materials Sciences Company
Royal DSM N.V. creates solutions that nourish, protect and
improve performance. Its end markets include human and animal
nutrition and health, personal care, pharmaceuticals, automotive,
coatings and paint, electrical and electronics, life protection
and housing. DSM manages its business with a focus on the triple
bottom line of economic performance, environmental quality and
social responsibility, which it pursues simultaneously and in
parallel. DSM has annual net sales of about ?8 billion and
employs some 22,700 people worldwide. The company is
headquartered in the Netherlands, with locations on five
continents. DSM is listed on Euronext Amsterdam. More
information: www.dsm.com
2011-02-02
LANXESS produces five
millionth metric ton of caprolactam
With the beginning of February 2011, the specialty chemicals
group LANXESS has produced the five millionth
metric ton
of its plastics precursor caprolactam at its facility in Antwerp,
Belgium. This is the equivalent of roughly 250,000 tankers full.
The world-scale facility in the port of Antwerp commenced
production in 1967. An investment project totalling Euro 35
million is underway to expand production there by ten percent
from its current volume of 200,000 metric tons per year. LANXESS has about 1,400
employees at its site in Antwerp.
Caprolactam is required primarily for the production of the
plastic polyamide 6 and used for the production of high-tech
Durethan plastics. Durethan is most commonly used in the
automotive industry. The use of the material instead of sheet
steel enables above all considerable reductions in component
weight, particularly in plastic-metal composite technology
(hybrid technology), resulting in lighter and safer vehicles that
consume less fuel.
Global demand for high-tech plastics continues to rise,
particularly in the U.S.A., China and India. Experts expect the
global use of high-tech plastics per automobile to increase by
roughly seven percent per year through 2020.
2011-02-15
LANXESS steps up commitment to biobased raw materials
* USD 17 million invested in Gevo’s IPO
* 10-year exclusive supply agreement with Gevo
* Biobased butyl rubber successfully produced in tests
LANXESS is strengthening its commitment to produce premium
synthetic rubber from biobased raw materials. As part of this
commitment, LANXESS has increased its minority shareholding in
Gevo, Inc. that focuses on renewable chemicals and advanced
biofuels.
LANXESS’ shareholding now amounts to 9.1 percent after the world’s largest synthetic rubber
producer invested USD 17 million in the US-company’s initial public offering. LANXESS
initially invested USD 10 million in Gevo as part of a private
placement in May 2010.
LANXESS’ increased equity stake reflects
the good progress made by both companies in developing
isobutene from renewable resources. Isobutene is a key raw material
needed in the manufacture of butyl rubber.
“As
the world’s largest purchaser of isobutene,
it is only prudent that we seek other supply options from
renewable sources as an alternative to traditional fossil fuels,”
said Axel C.
Heitmann, Chairman of the LANXESS Board of Management. “This investment also sharpens our
focus on ‘Green Chemistry’
and sustainable
production, which will gain in significance in the coming years.”
Isobutene is
conventionally produced in steam crackers, which use various
petrochemical-based materials as feedstock. Alternatively, Gevo
is developing a fermentation process to produce the organic
compound isobutanol from the fermentable sugars発酵性糖in biomass, starting with corn. At the same time, LANXESS is
developing a dehydration process to convert isobutanol into
isobutene.
In addition to the share deal, both companies have signed an
agreement that gives LANXESS certain exclusive rights
to purchase biobased isobutanol from Gevo, while Gevo receives an exclusive
first right to supply LANXESS with specified quantities of
biobased isobutanol over a ten-year period. This arrangement is
still subject to the parties’ completion of a definitive
off-take agreement, which is presently in negotiation.
“We
are extremely pleased that LANXESS has increased its holdings in
Gevo,” said Patrick Gruber, CEO of Gevo. “This new 10 year agreement further
validates the technology and investment behind creating isobutene
from renewable resources. It solidifies our strategic
relationship with a global leader and enables us to better plan
our future capacity growth.”
Gevo’s isobutanol can be used directly
as a specialty chemical, as a gasoline blendstock, a jet
feedstock and through conversion into plastics, fibers, rubber
and other polymers. Gevo is currently retrofitting capacity of 22
million gallons per year (MGPY) at its first ethanol facility in
Luverne, Minnesota, to produce 18 MGPY (50,000 metric tons) of
isobutanol in the first half of 2012. In addition, Gevo plans to
expand its production capacity in the coming years through
acquisitions and joint ventures and aims to have more than 350
MGPY of production capacity by 2015.
LANXESS’ dehydration process has not only
proven to be successful in the laboratory but also in a
small-scale reactor in Leverkusen, Germany, over a period of
several months. Tests have shown that the process can deliver
biobased butyl rubber that meets the rigorous specifications of
the tire industry, which represents roughly 25 percent of LANXESS’
sales.
Colorado-based Gevo was founded in 2005 and currently has about
100 employees. It has raised USD 95.7 million through its initial
public offering and its stock started trading on the Nasdaq stock
exchange on February 9, 2011. Other existing shareholders in
Gevo, including Richard Branson’s Virgin Green Fund, have also
invested additional funds in the IPO.
LANXESS is the world’s second-largest producer of butyl
rubber and has plants in Sarnia, Canada, and Zwijndrecht,
Belgium. The company is also investing EUR 400 million in a new
butyl rubber plant in Singapore, which comes on stream in the
first quarter of 2013.
LANXESS’ butyl rubber business, headed by
Ron Commander, produces high-quality butyl and halobutyl rubbers
for the tire and rubber industry. High impermeability to gases
and liquids is one of the great advantages of these rubbers. This
property is particularly useful for tire inner liners, inner
tubes and other niche markets, such as pharmaceutical closures
and protective clothing.
Gevo社には、フランスの国際石油ガス企業であるTotal社や、Richard
Branson氏のVirgin Green Fundも出資している。2005年設立のGevo社は従業員55人で、California大学Los
Angeles校（UCLA）やCalifornia工科大学など世界的に有名な研究機関とも緊密に協力している。
Gevo
Strategic Technical
and Engineering Alliances
ICM, Inc(a
leader in the ethanol industry).: Since 1995, ICM has
focused on sustaining agriculture through innovation
by engineering, building, and supporting the
renewable fuel industry’s leading
biorefineries and has designed approximately 60% of
all current North American ethanol production
capacity. Through Gevo’s exclusive alliance
with ICM, we have successfully demonstrated the
production of isobutanol via the retrofit of a one
MGPY ethanol demonstration facility in St. Joseph,
Missouri using our first-generation bacterial
biocatalyst. We plan to work with ICM to deploy our
technology platform through retrofit of these
production facilities in North America.
Cargill: Cargill
is an international producer and marketer of food,
agricultural, financial and industrial products and
services. Cargill has granted Gevo exclusive rights
to integrate Cargill’s world class
microorganisms into its GIFT™
process
for the production of butanols from cellulosic sugars
that are derived from biomass such as corn stover,
switchgrass, forest residues and other sustainable
feedstocks.
CDTECH: Gevo has
secured a non-binding development and marketing
commitment from CDTECH, a leading hydrocarbon
technology provider for the petrochemical and
refining industry. Gevo believes that its
relationship with CDTECH will accelerate the
development of a broader market for downstream
applications of its isobutanol.
Customer Pipeline
Gevo is developing a
customer list of global players and is expecting to convert
non-binding agreements into firm supply agreements as it
ramps up its production capacity in 2012 and beyond. Here is
a representative sample:
Synthetic
Rubber: Gevo has signed a non-binding heads of
agreement to supply
LANXESS,
with isobutanol for the production of butyl rubber.
Gasoline
Blendstock: Total has signed a
non-binding letter of intent to purchase isobutanol
for use as a second-generation biofuel.
Materials,
Plastics and Fibers: Toray has signed a
non-binding letter of interest related to the future
supply of isobutanol for the production of
para-xylene for the production of plastics and other
performance materials.
Biojet
Gevo is working closely with the Air Transport
Association of America, the U.S. Department of
Defense, the U.S. Air Force and other companies in a
strategic effort to develop the
biojet industry. A non-binding letter
of intent has been signed with United Air Lines to
supply their hub airport in Chicago at O’Hare International
Airport starting in 2013.
2011/3/1
LANXESS Acquires Syngenta’s Material Protection Business
LANXESS has agreed to acquire the Material Protection business of
Switzerland’s Syngenta.
・LANXESS
to become a leading biocide supplier for construction materials; ・Long-term
strategic partnership between both companies; ・LANXESS
strengthens focus on megatrend urbanization.
As a result, the German specialty chemicals company will become
one of the leading suppliers of biocides for
construction materials. The transaction is expected to
close in April 2011. Both parties have agreed not to disclose the
acquisition price.
LANXESS will gain access to a broad range of fungicidal and
insecticidal active ingredients as well as application
technologies
used to protect construction materials such as wood, wallboards
and coatings from being discolored and damaged.
Syngenta’s Material Protection business had
sales of around EUR 19 million in 2010. Some 90 percent of sales
is generated in Europe and North America. LANXESS will acquire
the intellectual property, customer lists, supply contracts and
registrations for the Syngenta products. Employees and fixed
assets are not part of the transaction. The transaction will be
financed from existing liquidity.
The acquisition is also the starting point for a long-term
strategic partnership between both companies. LANXESS will gain
access to active ingredients and technologies developed by
Syngenta in the future, for use in material protection.
“We
are delighted to be once again cooperating with one of world’s top innovators for active
ingredients, which will ultimately benefit our customers,”
said Rainier van
Roessel, Board Member at LANXESS. “The deal also strengthens our
focus on the megatrend urbanization. This trend offers enormous
potential for our products that reliably protect construction
materials.”
The Material
Protection Products (MPP) business not only offers products for
the preservation of construction materials but also active
ingredients for disinfectants and stabilizers for non-alcoholic
beverages and wine. MPP has production sites in Krefeld-Uerdingen
and Dormagen (Germany), Wuxi (China) as well as Madurai (India).
The business, headed by Torsten Derr, has annual sales of less
than EUR 200 million.
In 2010, LANXESS’ fine chemicals division Saltigo
agreed on a long-term cooperation with Syngenta - one of the
world’s leading agrochemical companies.
The Basel-based company is investing some EUR 50 million in
expanding several Saltigo facilities in Leverkusen to
significantly enhance its capacity for synthesizing active
ingredients for crop protection agents. Saltigo produces the
active ingredients and intermediates at these facilities
exclusively for Syngenta and is one of the Swiss company’s strategic partners throughout
the world.
LANXESS (lanxess.com) is a leading specialty chemicals company
with sales of EUR 5.06 billion in 2009 and currently around
14,700 employees in 24 countries. The company is represented at
45 production sites worldwide. The core business of LANXESS is
the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals.
LANXESS selects Singapore
as site for world’s largest Nd-PBR plant
EUR
200 million investment
New
140,000 metric tons per year plant
Construction
of butyl rubber plant on track
Strong
demand for ‘green tires’
LANXESS
has selected Singapore as the site for its new neodymium
polybutadiene rubber (Nd-PBR) plant. The German specialty
chemicals company plans to invest roughly EUR 200 million in a 140,000 metric
tons per
annum facility on Jurong Island Chemical Park. The facility will
be the largest of its kind in the world. About 100 jobs will be
created. The plant is expected to start up in the first half of
2015.
A
corresponding memorandum of understanding (MoU) will be signed
tomorrow, June 2, 2011, between LANXESS CEO Axel C. Heitmann and
Leo Yip, Chairman of the Singapore Economic Development Board
(EDB). The signing is in connection with the first-ever official
visit of German Chancellor Angela Merkel to Singapore.
“It is only one year since we broke
ground for our butyl plant inSingapore. Now we are ready to
move forward with the second largest investment project in our
history,” said Heitmann. “The dynamic Asia region is a key
cornerstone of our mid-term growth strategy.”
LANXESS
conducted a feasibility study to evaluate potential locations for
the plant in Asia. Singapore won due to a very good raw materials
supply.
LANXESS
and the
Petrochemical Corporation of Singapore (Private) Limited (PCS)
have signed a MoU on the long-term supply, via pipeline, of butadiene from PCS
to LANXESS and raffinate II from LANXESS to PCS. Butadiene is the raw material
LANXESS needs to produce Nd-PBR and raffinate II will be a
product stream from LANXESS’ future butyl rubber plant in
Singapore.
“We are delighted to have reached
this MoU with LANXESS to supply the key feedstock for its
state-of-the-art synthetic rubber plant and to purchase raffinate
II from them,” said PCS Managing Director, Akira
Yonemura.
Other
arguments in favor of Singapore were its excellent
infrastructure, highly-skilled workforce, large sea port and
close proximity to growth markets.
"We
are delighted with LANXESS’ intention to build its new Nd-PBR
plant in Singapore," said Leo Yip, Chairman of the Singapore
Economic Development Board. "LANXESS’
expansion plan is a
testament to Singapore’s value as a strategic location
for high value manufacturing activities."
LANXESS’
new Nd-PBR plant
will be located on Jurong Island next to the company’s EUR 400 million butyl rubber
plant, which
is currently under construction and will come on stream in the
first quarter of 2013.
Construction
of the butyl rubber plant is progressing according to schedule.
Engineering and soil preparation have been completed and the
installation of infrastructure and steel is underway. In
addition, LANXESS reached one million man hours without losttime incident this month on the
building site, at which 750 employees are currently active.
LANXESS
is the leader in synthetic rubber for high-performance ‘green tires’
- the fastest
growing sector in the tire industry, with an annual global growth
rate of about nine percent. Growth is even more pronounced in
Asia at 14 percent per year. The world’s leading tire manufacturers, who
are supplied by LANXESS, are responding to this demand by
expanding production in Asia.
Demand
is being driven by the megatrend mobility as well as motorists
calling for higher environmental and safety standards in
performance tires. In addition, demand is being accelerated by
European Union legislation. As of 2012, all new tires sold in
Europe have to be labeled for fuel efficiency, wet grip and
external rolling noise.Japanese tire manufacturers
voluntarily introduced tire labeling at the start of 2010 and the
topic is under discussion in South Korea.
“The far-sighted approach by the EU
to introduce tire labeling, with the support of the German
government, is a positive example of how environmental policies
can benefit consumers and spur economic success,”
said Heitmann. “The initiative will ultimately
lead to more innovation within the German chemical and tire
industries, while at the same time creating jobs.”
Nd-PBR
is part of a tire’s compound and reduces energy
consumption more efficiently than many other tire rubbers. It
also reduces tire abrasion thus playing a significant role in
making cars safer as well as more ecological and economical.
Nd-PBR
was invented by LANXESS in Germany - the heart of company’s research and development
activities. The largest R&D centers are in Leverkusen,
Krefeld-Uerdingen and Dormagen, Germany. LANXESS increased its
R&D expenditures by 15 percent in 2010 and plans to increase
it by another 15 percent to roughly EUR 130 million in the
current year. Some 80 percent of this amount will focus solely on
Germany. Currently, over 400 employees are active for LANXESS in
R&D in Germany.
NKNK(Nizhnekamskneftekhim) is one
of the biggest producers and exporters of petrochemical
products in the Russian Federation.
Sythos S.A. is one of the largest
manufacturers of chemical raw materials in Poland, as well as
being Europe’s No. 1manufacturer of rubber
emulsions and third largest manufacturer of polystyrene for
foaming applications. Synthos S.A. was established on the
basis of Firma Chemiczna Dwory S.A. and Kaucuk a.s.
Karbochem (Pty) Ltd is a South African
manufacturer of various types of synthetic rubber
“Our domestic sites form the basis
of our innovative capability, the basis of our technological
expertise and therefore the basis of our competitiveness. Germany
holds the key to making our products more efficient and even
better in the future,” said Heitmann.
Nd-PBR
belongs to LANXESS’ Performance Butadiene Rubbers
(PBR) business unit, headed by Joachim Grub. The highly
innovative rubber is currently produced in Dormagen,
Germany, Cabo, Brazil, Port Jérôme, France, and
Orange, Texas, USA.
Apart from tires, performance butadiene rubbers are used for the
modification of plastics in the manufacture of High-Impact
Polystyrene (HIPS) for injection molding applications. Other
areas of application include golf balls, running shoes and
conveyor belts. PBR is part of LANXESS’
Performance
Polymers segment, which achieved total sales of EUR 3.8 billion
in 2010.
LANXESS is a leading
specialty chemicals company with sales of EUR 7.1 billion in 2010
and currently around 15,500 employees in 30 countries. The
company is at present represented at 46 production sites
worldwide. The core business of LANXESS is the development,
manufacturing and marketing of plastics, rubber, intermediates
and specialty chemicals.
LANXESS to break ground in Singapore for world’s largest Nd-PBR plant in
September
EUR 200 million investment in new 140,000 metric tons per year plant
Engineering work well advanced
Contracts signed with key suppliers
Strong demand for “Green Tires” supported by tire labeling
LANXESS world’s leading supplier of Nd-PBR
Construction of neighboring butyl rubber plant on track
LANXESS will break ground for its new neodymium polybutadiene rubber (Nd-PBR)
plant in Singapore on September 11 this year. The German specialty chemicals
company plans to invest roughly EUR 200 million
(about SGD 340 million) in a 140,000 metric tons
per annum facility in Jurong Island Chemical Park. The facility will be the
largest of its kind in the world and serve the growing market for “Green Tires”,
especially in Asia. About 100 jobs will be created. The plant is expected to
start up in the first half of 2015.
Engineering work has advanced considerably since June 2011, when the company
announced it had selected Singapore as the site for the new plant.
“I am delighted to announce that it is now full steam ahead for the second
largest investment project in our company’s history,” said LANXESS’ Chairman of
the Board of Management, Axel C. Heitmann, at an event in Singapore to sign
contracts with key suppliers.
Key supply contracts
At today’s event, Heitmann announced that LANXESS has signed contracts with key
suppliers to its Nd-PBR plant. With these suppliers in place, the project
execution phase can now start to set up the infrastructure for the construction
of the plant.
Petrochemical Corporation of Singapore (Private) Limited (PCS) has agreed on a
long-term supply of butadiene to LANXESS. Butadiene is the raw material LANXESS
needs to produce Nd-PBR. PCS is building a new butadiene extraction unit and
associated infrastructure necessary to supply the raw material. Both companies
had signed a Memorandum of Understanding already in June last year regarding the
supply.
“We are also very pleased to announce our decision to go ahead with our new
butadiene plant, which is made possible through the close collaboration with
LANXESS,” said Akira Yonemura, PCS Managing Director. “This new investment will
further strengthen PCS’s competitive position and we look forward to working
with LANXESS for the successful completion and start-up of both our new plants.”
In addition, Singapore’s TP Utilities Pte Ltd (a wholly-owned unit of Tuas Power
Ltd) will provide steam to the Nd-PBR plant. TP Utilities is adding 650 tons per
hour of steam capacity to its existing biomass-clean coal cogeneration plant on
Jurong Island, which currently has 500 tons per hour of steam capacity and 100
Megawatt of electricity generation capacity.
“We thank LANXESS for continuing to show strong confidence in our services by
selecting TP Utilities again as a key supplier to its latest milestone project,”
said Lim Kong Puay, President and Chief Executive Officer of Tuas Power Ltd, and
Director of TP Utilities Pte Ltd. “We will be supplying steam to LANXESS’ new
Nd-PBR plant, when it begins operation, for a contract period of ten years, with
an option to extend the service.”
LANXESS had conducted a feasibility study to evaluate potential locations for
the plant in Asia. Singapore won due to a very good raw materials supply, its
excellent infrastructure, highly-skilled workforce, large sea port and close
proximity to key customers in the booming Asia region.
New plant to meet strong demand for “Green Tires”
LANXESS is the market leader for Nd-PBR used in “Green Tires” - the fastest
growing sector in the tire industry, with an annual global growth rate of about
10 percent. Growth is even more pronounced in Asia at 14 percent per year.
Demand is being driven by the megatrend mobility, above all in the regions of
Asia and Latin America, as the middle class there becomes more affluent. In
addition, demand will be accelerated by tire labeling being introduced around
the world. November 2012 will see the launch of mandatory tire labeling in the
European Union. Tires will be graded from A to G according to their fuel
efficiency and wet grip. Rolling noise is also measured. Therefore, the new
legislation provides more transparency for consumers by highlighting the added
value of “Green Tires”.
Japan and South Korea were the first countries in the world to introduce a label
system. After a voluntary tire label was introduced in Japan in January 2010,
South Korea launched its voluntary labeling in November 2011 and will introduce
a mandatory label at the end of 2012. Other countries like Brazil, the USA and
China are expected to follow in the coming years.
“It is more than fitting that today’s Nd-PBR announcement falls in our company’s
Year of ‘Green Mobility’,” added Heitmann. “It is our company’s focus on
innovation and technology that makes it possible to reduce rolling resistance in
tires and thus fuel consumption. This is good news for the consumer and the
environment.”
Last year, LANXESS commissioned a study with Frost & Sullivan consultants to
examine the environmental awareness of drivers in Singapore in relation to their
automobiles. The study revealed that motorists were concerned about the
environment and were already undertaking measures at home to reduce pollution.
However, their environmental concerns did not fully extend to their car and
tires, due to lack of information available about the positive impact through
tire labeling.
According to the study, the use of “Green Tires” could result in a saving of
more than 352,600 tons of CO2 as well as a saving of more than 140 million
liters of fuel annually in Singapore.
High-performance rubber
Nd-PBR is used in the treads and sidewalls of “Green Tires”. It helps reduce the
rolling resistance and increase the fuel efficiency of a tire. Nd-PBR is highly
resistant to abrasion and plays a significant role in making tires more durable
and safer.
Nd-PBR belongs to LANXESS’ Performance Butadiene Rubbers (PBR) business unit,
headed by Joachim Grub. The highly innovative rubber is currently produced in
Dormagen, Germany; Cabo, Brazil; Port Jérôme, France and Orange, Texas, USA.
Apart from tires, performance butadiene rubbers are used for the modification of
plastics in the manufacture of High-Impact Polystyrene (HIPS) for injection
molding applications. Other applications include golf balls, running shoes and
conveyor belts. PBR is part of LANXESS’ Performance Polymers segment, which
achieved total sales of EUR 3.8 billion (about SGD 6.4 billion) in 2010.
BTR plant on track
LANXESS’ new Nd-PBR plant will be located on Jurong Island next to the company’s
butyl rubber plant, which represents the company’s single-largest investment at
EUR 400 million (about SGD 675 million). It is currently under construction and
will come on stream in the first quarter of 2013.
Construction of the butyl rubber plant is progressing according to schedule. The
installation of infrastructure and steel has been successfully completed. Most
of the equipment is on site and installed. More than 2,000 workers are currently
employed on the construction site.
LANXESS is a leading specialty chemicals company with sales of EUR 7.1 billion
in 2010 and currently around 16,100 employees in 30 countries. The company is at
present represented at 47 production sites worldwide. The core business of
LANXESS is the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals. LANXESS is a member of the leading
sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.
June
3, 2011 Rubber World
Lanxess
in talks about acquiring Taminco
Lanxess
is in talks to buy Belgian chemicals group Taminco NV from
private equity firm CVC Capital Partners for about EUR 1 billion
or $1.4 billion, the Financial Times Deutschland reported.
Jul 25th
2011 Reuters
Lanxess quits talks to
buy Taminco from CVC
German rubber
chemicals group Lanxess has walked away from talks to
buy Belgium's Taminco as it could not agree with
seller CVC over the price, Financial Times
Deutschland reported, citing sources.
Lanxess has bid about 1 billion euros ($1.43 billion)
for the chemicals maker, which would have made the
deal the biggest takeover in Lanxess's six-year
history, the paper said.
Buyout firm CVC would now revive plans to take
Taminco public if it does not find another
prospective buyer, the paper added.
The
acquisition would reportedly be the largest in Lanxess’
history. Taminco,
which produces alkylamines and alkylamine derivatives, reported
sales of EUR 715 million and profit of EUR 41 million in 2010.
Taminco has eight production plants worldwide dedicated to the
production of alkylamines and alkylamine derivatives, comprising
two large facilities each in Europe and the United States, and
smaller facilities in China and Brazil. The company employs 800
people in 16 countries worldwide.
Taminco,
which was spun off in 2003 from the chemical and pharmaceutical
company UCB, was acquired by CVC Capital Partners in 2007 for an
enterprise value of EUR 800 million.
First-quarter net
income at Lanxess jumped to 166 million euros from 104
million euros a year earlier. The chemical maker is rated
Baa2 at Moody’s Investors Service and an
equivalent BBB by Standard & Poor’s.
In Europe, Taminco’s main competitor is BASF SE.
Taminco was spun off from UCB SA in 2003. The company is
active in Asian markets, which makes it attractive to makers
of intermediate chemicals in the region as they seek to add
domestic production.
Taminco has reduced
debt to 3.2 times earnings before interest, taxes,
depreciation and amortization, a ratio implying borrowings of
about 510 million euros. Ebitda rose 14 percent to 159
million euros last year.
A purchase of Taminco
would add to a flurry of deals in the chemicals industry, as
demand rebounds from customers in the manufacturing,
automobile and personal-care industries.
BASF last year purchased Cognis GmbH for $4.3 billion, followed by
Berkshire Hathaway Inc.’s acquisition of Lubrizol
Corp. for $9 billion three months later. Solvay SA, the world’s biggest soda-ash maker,
announced the acquisition of Rhodia SA last month, and Ashland Inc.,
the maker of Valvoline motor oil, agreed today to buy closely
held International Specialty Products Inc. for $3.2 billion
in cash.
Laxness
completed
its acquisition of DSM’s elastomer
business
for $415 million in March, adding technology to lower
production costs of the material used in cars, cables and
construction. The German chemicals maker also bought
Brazilian rubber maker Petroflex Industria & Comercio SA
in 2008 to boost its presence in South American markets.
LANXESS invests EUR 15 million in its glass fiber plant in Antwerp
Capacity expansion for glass fibers of 10 percent
Both glass furnaces to be replaced in the next two years
EUR 35 million expansion of caprolactam plant finalized
Recent investments for high-tech plastics reach EUR 90 million
LANXESS is investing EUR 15 million in its glass fiber
plant in the Antwerp docklands. For the specialty chemicals company glass fibers
are a key intermediate for the production of high-tech plastics. With the
expansion, the actual annual capacity of 60,000 metric tons will increase by 10
percent. The announcement was made during a LANXESS High-Tech Plastics Day at
the facilities for caprolactam and glass fibers in Belgium. With the investment
the glass fiber plant will replace both furnaces.
“The high-tech plastics business is a major growth driver for LANXESS. There is
attractive business potential in the global market arising from the increasing
demand for modern mobility as well as from the electric and electronic markets,”
stated Werner Breuers, member of the Board of Management of LANXESS AG. The
global demand for high-tech plastics is expected to increase by roughly seven
percent per year through 2020.
Just before summer an investment project of EUR 35 million to expand the
production of the plastic intermediate caprolactam at the site in the Antwerp
docklands was finalized. The production capacity of 200,000 metric tons per year
will be increased by another 10 percent.
Since breaking away from Bayer in 2004,
Lanxess has increased caprolactam (CPL) capacity to 220,000 tonnes per year
from 50,000 tonnes per year. The company repaired its glass furnaces in 2010
– and will do again in 2013 – to increase annual capacity by 10% to 66,000
tonnes.
One third of the caprolactam and glass
fibre products are sold to external customers and the other two-thirds are
used by Lanxess itself in its PA and PBT SCP compounds.
LANXESS has been investing substantial amounts in the expansion of its global
production network for high-tech plastics during the last 18 months. Including
the glass fibers expansion, recent investments for high-tech plastics account
for EUR 90 million. LANXESS’ Semi-Crystalline Products (SCP) business unit is a
leading supplier of premium high-tech plastics. New compounding facilities are
being built in the United States and Asia. In the existing compounding plants
investments are being made to increase capacity.
Heart of high-tech plastics
“The investments in our Antwerp facilities for caprolactam and now glass fibers
further strengthen our competitiveness,” said Michael Zobel, head of the SCP
business unit. “More than half of the caprolactam and glass fibers produced is
used internally. This perfect upstream integrated value chain is a key success
factor for our business. With the production of these intermediates Antwerp is
really the heart of the LANXESS high-tech plastics business.”
The LANXESS Year of High-Tech Plastics
LANXESS has declared 2011 the Year of High-Tech Plastics. As part of the theme
year, LANXESS is initiating a series of events and taking part in trade fairs
and exhibitions that provide information to all interest groups. The company
highlights where high-tech plastics are used, the benefits they offer and, in
particular, how they can also help ensure sustainable development. The High-Tech
Plastics Day for the European media in Antwerp is part of this program.
The Semi-Crystalline Products business unit belongs to the Performance Polymers
segment. It employs around 1,500 people worldwide with current production sites
in Belgium (Lillo and Kallo in the Antwerp harbor), Germany (Krefeld-Uerdingen
and Hamm-Uentrop (JV)), and China (Wuxi).
Durethan®、ポリアミド 6 及び 66 ベースのエンジニアリングプラスチック
Pocan®、ポリブチレンテレフタレートベースのエンジニアリングプラスチック
DuBay Polymer GmbH,
a joint venture between Bayer and DuPont in
Hamm-Uentrop
江蘇省無錫市ポリアミド、ポリエステルのコンパウンド工場稼動（能力2万トン/年） In Wuxi, Lanxess has added a third
line to increase compounding capacity to 60,000 tonnes per year, up from
20,000 tonnes per year in 2005.
Outside Europe, Lanxess is investing €10m
each in new plants in North Carolina, the US, and Gujarat, India. Each of
these new two plants will have 20,000 tonnes per year compounding capacity
when they come on stream in 2012 and will draw upon polyamide 6 polymerised
at the Krefeld-Uerdingen plant in Germany from caprolactam made by Lanxess
in Antwerp.
The automotive industry is the largest customer for the Semi-Crystalline
Products (SCP) business unit, which produces Durethan(PA6/PA66) and Pocan(PBT). These highly
innovative products allow for the design of lighter-weight plastic parts to
replace metal parts in automobiles, contributing to fuel efficiency and reduced
emissions. In addition, Durethan and Pocan enable carmakers and car parts
suppliers to achieve considerable savings through cheaper production and easier
assembly.
LANXESS is a leading specialty chemicals company with sales of EUR 7.1 billion
in 2010 and currently around 15,800 employees in 30 countries. The company is at
present represented at 46 production sites worldwide. The core business of
LANXESS is the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals.
One recent automotive innovation was
frontends, made from a glass fibre reinforced
PA6 and metal hybrid, which are 40% lighter than conventional
all-steel frontends.
Hartwig Meier, head of SCP product and
application development, said there are now 60 million hybrid frontends on
more than 70 car models, including the new 2011 Mercedes Benz A- and B-Class
cars.
The company has also developed an
all-plastic frontend for the new Audi A8 car,
comprising formed polyamide composite inserts made from continuous fibre
reinforced “organic sheet”.
ランクセスは、〈デュレタン（Durethan）BKV 30 EF〉（PA6）を使用した複合成形品において、アウディA8のハイブリッドフロントエンドへの採用例をChinapls2011の展示会場にて紹介した。
同社は今回初めてアルミニウムではなく軽量有機シートを、ハイブリット・フロントエンドの薄い（1mm）U字型ロアビームの成形に使用し、同じ役目をするアルミニウムと比べて、20％の軽量化を実現した。この複合成形部品は、自動車メーカーとシステムサプライヤ、原料メーカーが協力し開発したもので、
Magna Decoma Exterior Systems社により製造されている。Bond-Laminates
GmbH社が半製品の有機シートを供給し、有機シートと射出成形プロセスにおいてランクセスがカスタマイズした〈デュレタン〉が使用されている。
Previously, steel or aluminum sheet was used
as the metal component for hybrid technology.
Now, for the first time, engineers succeeded in designing a hybrid front end
for the new Audi A8, using an nylon composite sheet.
Durethan BKV 30 H2.0 EF (PA 6, 30
% glass fibres)
-------
2010/3/17
Front end produced by hybrid technology with
organic plastic sheet
The plastic-metal composite technology invented by LANXESS, also known as hybrid
technology, has become firmly established in the automotive industry for the
manufacture of lightweight, high-strength structural parts such as front ends,
pedal support brackets and brake pedals. Previously, steel or aluminum sheet was
used as the metal component. Now, for the first time, an
organic plastic sheet has been used alongside
aluminum sheet in a hybrid front end: for the lower beam of the front end
of the new Audi A8, where a U-shaped profile made of the lightweight material is
used. "This front end proves that organic sheet meets all the requirements
relating for instance to torsional and flexural strength. It is an excellent
alternative to steel and aluminum sheet in hybrid technology. We regard the
component as an intermediate step to all-plastic hybrid front ends that are
manufactured on the production line using only inserts of organic sheet in
combination with polyamide 6," said Ulrich Dajek, a design expert at LANXESS.
2011-09-21 Lanxess
LANXESS to produce first bio-based EPDM rubber in the world
brand name Keltan Eco
LANXESS is strengthening its commitment to produce premium synthetic rubbers
from bio-based raw materials. The German specialty chemicals company aims to
commercially produce ethylene-propylene-diene monomer (EPDM) from bio-based
ethylene by the end of the year. It will be the first form of bio-based EPDM
rubber in the world.
EPDM is conventionally produced using the petroleum-based raw materials ethylene
and propylene. Alternatively, LANXESS plans to use
ethylene derived purely from the renewable resource sugar cane. This
bio-based form of ethylene is produced by dehydrating ethanol from Brazilian
sugar cane. The company Braskem S.A. will supply
the bio-based ethylene via pipeline to LANXESS’ existing EPDM plant in Triunfo,
Brazil.
“LANXESS’ ongoing search for alternatives to fossil fuels underlines its
commitment to reducing CO2 emissions through sustainable production,” said
Guenther Weymans, head of LANXESS’ Technical Rubber Products business unit. “We
are very excited that our Brazilian plant will be the pioneer for bio-based EPDM.”
“LANXESS will contribute to broaden our portfolio of renewable chemicals’
clients. This agreement will bring the benefits of green ethylene to other
important applications and markets. LANXESS has extensive automotive experience
and an excellent reputation in this market, which makes it an ideal partner,”
said Marcelo Nunes, Braskem’s Renewable Chemicals Director.
Triunfo currently produces
40,000 metric tons per year of regular EPDM rubber and it is expected
that the first batches of the product Keltan Eco will amount to several hundred
metric tons. The company’s other EPDM production sites are based in Geleen, The
Netherlands, Marl, Germany, and Orange, Texas, U.S. All EPDM grades will be sold
in the future under the brand name Keltan.
EPDM is used above all in the automotive industry but also in the plastics
modification, cable and wire, construction and oil additives industries. Its
properties include very low density, good resistance to heat, oxidation,
chemicals and weathering as well as good electrical insulation properties.
LANXESS will be showcasing Keltan Eco at its Rubber Day Germany, being held in
Dusseldorf today, for the first time.
In addition, LANXESS is already seeking alternative sources to produce the
premium synthetic rubber product butyl rubber, which is used predominantly in
the tire industry. Together with Colorado-based Gevo, Inc, LANXESS is developing
isobutene from renewable resources starting with corn. Isobutene is a key raw
material needed in the manufacture of butyl rubber.
Last year, LANXESS started up a new on-site power plant at its Brazilian site in
Porto Feliz, which produces iron oxide pigments. The innovative, highly
efficient cogeneration plant for the production of electricity and steam is
powered by bagasse, a fibrous component of sugar cane that is left over after
sugar production. Thanks to the use of this renewable, environmentally friendly
raw material, energy can be produced on a CO2-neutral basis for the site.
2011-09-26 Lanxess
LANXESS to expand its operations in the
Netherlands
EUR 12 million investment in Geleen site
50% of total capacity to be converted to Keltan ACE technology
New headquarters for global EPDM rubber business in Geleen
LANXESS is investing EUR 12 million to convert 50 percent of its ethylene
propylene diene monomer (EPDM) synthetic rubber production in Geleen, the
Netherlands, to innovative Keltan ACE technology.
During 2013, the German specialty chemicals company will implement the new
technology at the largest of its three production lines, which accounts for half
of the total production capacity of 160,000 metric tons
per year in Geleen.
DSM Elastomers, a
business group of Royal DSM N.V., today announced that in 2008
it will start producing specialty EP(D)M’s
based on a worldwide exclusive license agreement with
NOVA Chemicals.
The agreement further underlines DSM’s
innovation ambitions in its Performance Materials cluster, which
is an important element of DSM’s
strategy Vision 2010 - Building on Strengths.
Based on NOVA Chemicals’
proprietary single
site catalyst technology, DSM Elastomers has achieved key
breakthroughs in the area of advanced catalysis technology that
allow for the efficient production of EP(D)M’s
with improved properties.
This new technology will
be branded Keltan ACE™.
ACE is the acronym for Advanced Catalysis Elastomers.
Keltan ACETM Technology
• Base catalyst technology licensed from Nova Chemicals.
• DSM developed a catalyst family for the production of Keltan
and holds strong patent positions.
• Green technology. No catalyst waste and reduced energy
consumption.
• New catalyst system creates the opportunity to develop high
value products that are not attainable
with state-of-the-art Ziegler-Natta or classical metallocene chemistry.
• First products to be launched with new advanced catalyst
technology are high-VNB products,
dedicated to peroxide curing of EPDM. First new product is Keltan DE
8270C.
• The trade name for new advanced catalyst technology by DSM is…
Compared with conventional production
processes, Keltan ACE technology reduces energy requirements for rubber
production and it does not require catalyst extraction as a result of high
catalyst efficiency. Furthermore, the process enables the manufacture of new
EPDM rubber grades.
In addition, LANXESS will set up a new headquarters in Geleen for its global
EPDM Rubber business. The building for up to 120 employees will be constructed
on the chemical industrial site Chemelot. The contracts with the Chemelot Campus
Consortium were signed today. Construction will start in the spring of 2012, and
inauguration is planned for the beginning of 2013.
“The sustainable Keltan ACE technology, our new and highly modern headquarters
for our EPDM business and the highly innovative environment of the Chemelot
Campus will help us on our course of expansion,” said Axel C. Heitmann, Chairman
of the Board of Management of LANXESS AG. “The planned measures will make the
Geleen site a true center of innovation within the global LANXESS network.”
LANXESS steers its global business with EPDM rubber from Geleen. In May 2011,
LANXESS acquired the EPDM rubber business of Royal DSM N.V. for EUR 310 million,
with 420 employees worldwide – including 260 in Sittard-Geleen.
“The integration process of the new EPDM business into LANXESS is running
smoothly and is already contributing very positively to group earnings,“ said
Guenther Weymans, LANXESS Country Head for the Netherlands and Head of the
Technical Rubber Products business unit.
EPDM is used above all in the automobile industry but also in the plastics
modification, cable and wire, construction and oil additives industries. Its
properties include very low density, good resistance to heat, oxidation,
chemicals and weathering as well as good electrical insulation properties.
Last week, LANXESS announced that it plans to commercially produce EPDM from
bio-based ethylene by the end of the year. It will be the first form of
bio-based EPDM rubber in
the world and will be sold under the brand name Keltan
Eco. EPDM is conventionally produced using the petroleum-based raw
materials ethylene and propylene. Alternatively, LANXESS plans to use ethylene
derived purely from the renewable resource sugar cane. This bio-based form of
ethylene is produced by dehydrating ethanol from Brazilian sugar cane. The
company Braskem S.A. will supply the bio-based ethylene via pipeline to LANXESS’
existing EPDM plant in Triunfo, Brazil.
Triunfo currently produces 40,000 metric tons per
year of regular EPDM rubber and it is expected that the first batches of the
product Keltan Eco will amount to several hundred metric tons.
LANXESS is a leading specialty chemicals company with sales of EUR 7.1 billion
in 2010 and currently around 15,800 employees in 30 countries. The company is at
present represented at 46 production sites worldwide. The core business of
LANXESS is the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals. LANXESS is a member of the leading
sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.
2011-10-05 Lanxess
LANXESS strengthens commitment to Brazilian
automotive sector
・Three new projects representing EUR 30
million (R$ 75 million) investment
・More than 100 jobs to be created
・Porto Feliz to become specialty chemicals hub
・First bio-based EPDM rubber in the world to be produced in Triunfo
・Extra capacities of high-performance rubber for ‘Green Tires’
・First Automotive Day to be held October 6 in São Paulo
LANXESS is strengthening its commitment to Brazil with three major new
investments totaling roughly EUR 30 million, or R$ 75 million, which will create
more than 100 jobs. The investments will support the growing trend toward green
mobility in the Latin American country. LANXESS’ high-tech materials will offer
innovative solutions to the growing local automotive market.
Booming Brazilian automotive industry
The three investments include the construction of two new plants at LANXESS’
Porto Feliz site in the State of São Paulo. One is for the production of
the high-tech engineering plastics Durethan and Pocan – used primarily by
the automotive industry to make cars lighter and more fuel efficient. The new
plant, which will be run by the business unit Semi-Crystalline Products, will
have an initial capacity of 20,000 metric tons per year. The plant will go on
stream in the middle of 2013.
The other new Porto Feliz plant will produce the rubber
additives Rhenogran as well as Rhenoshape curing bladders.
Rhenogran pre-dispersed rubber additives can
significantly improve the quality and durability of a rubber product, while
Rhenoshape bladders are used by the tire industry
to give tires their final shape and properties. The plant will be run by LANXESS’
subsidiary, Rhein Chemie, based in Mannheim, Germany. It will have an output of
2,000 metric tons per year of rubber additives and produce 170,000 bladders per
year. The plant will start in the fourth quarter of 2012.
First bio-based EPDM rubber in the world
The third investment involves a pioneering move to use bio-based raw materials
in the production of synthetic rubber. LANXESS is re-engineering parts of its
plant in Triunfo, Rio Grande do Sul, in order to
produce EPDM rubber from bio-based
ethylene. The Brazilian company, Braskem S.A., will supply the
ethylene, derived from sugarcane, by pipeline as of November 2011. This
represents the world’s first production of bio-based EPDM rubber which will be
named Keltan Eco. A quarter of the 40,000 metric tons annual capacity at the
Triunfo plant is earmarked for Keltan Eco.
“The use of bio-based raw materials to produce synthetic rubber at the Triunfo
plant is in keeping with LANXESS’ ongoing commitment to green chemistry,” said
Heitmann.
Extra capacities of high-performance rubber for ‘Green Tires’
LANXESS is the leader in high-performance synthetic rubbers for ‘Green Tires’ –
the fastest growing sector in the tire industry, with an annual growth rate of
about 10 percent. Demand is being driven by the megatrend mobility as well as
motorists calling for higher environmental and safety standards. In addition,
demand will be accelerated by tire legislation in the European Union, which aims
to reduce CO2 and noise emissions by promoting ‘Green Tires’ that do not
compromise on safety. Corresponding legislation has also been passed in South
Korea.
In order to meet this demand, LANXESS is expanding its global capacities for
high-performance rubbers used in ‘Green Tires’, including those at its Brazilian
sites. LANXESS has been implementing a capacity expansion at its production
facility for neodymium polybutadiene rubber (Nd-PBR) in
Cabo de Santo Agostinho, Pernambuco. It will complete the expansion by
the end of 2011, doubling capacity to 40,000 metric tons per year. In addition,
LANXESS has upgraded technology at the plant to the same levels used at its
Nd-PBR plants in Germany and the USA.
Nd-PBR is used in the treads and sidewalls of ‘Green Tires’. It helps reduce the
energy consumption or rolling resistance of a tire. Nd-PBR also reduces abrasion
thus playing a significant role in making tires more durable.
Technology upgrade for high-performance rubber at Triunfo
At the same time, LANXESS has already initiated a feasibility study to implement
new technology in order to switch production of emulsion
styrene-butadiene rubber (ESBR) used in standard tires
to solution styrene butadiene rubber (SSBR) used in
‘Green Tires’ at Triunfo. The current capacity for ESBR in
Triunfo is 110,000 metric tons per year and the switch would potentially
require a medium-size, double-digit million EUR amount. A final decision will be
made mid-2012.
SSBR is mainly used in the tread compound of 'Green Tires', where it helps to
reduce rolling resistance and improve grip on wet roads. ‘Green Tires’ can reach
their peak performance with formulations containing both SSBR and Nd-PBR.
Successful growth story in Brazil
These latest investments are part of LANXESS’ growing presence in Brazil. The
German company that purchased Petroflex in 2008 had started with more than 400
employees in Brazil seven years ago. Today it employs roughly 1,000 workers and
is one of the largest chemical companies in Brazil.
Brazil is also one of the most successful and fastest-growing markets for
LANXESS products. The country accounted for less than one percent of LANXESS’
global sales in 2005. Today it accounts for roughly 10 percent of global, sales.
Furthermore, Brazil sales reached a record EUR 701 million in 2010. Heitmann:
“And we are well on track for another record year in 2011.
In recognition of its commitment to green mobility in Brazil, on October 6,
LANXESS will be hosting the first Brazil Automotive Day in São Paulo – an
all-day conference featuring many of the leaders of the automotive and tire
industries of Brazil and Latin America. 400 people will attend the event.
2011-10-12 Lanxess
LANXESS strengthens global phthalate-free
plasticizer portfolio
Acquisition of US-based UNITEX
Access to new diversified plasticizer technology base
LANXESS is strengthening its global asset base and product portfolio for
premium, environmentally-friendly phthalate-free
plasticizers. The specialty chemicals company has agreed to acquire
UNITEX Chemical Corporation located in Greensboro,
North Carolina. Financial details were not disclosed. The transaction also
represents LANXESS’ first acquisition of a manufacturing site in the United
States.
Privately-owned UNITEX has about 40 employees based at its production site in
Greensboro. The site has a capacity of more than 50,000
metric tons per year dedicated to mainly producing phthalate-free
plasticizers and other specialty products, including flame retardants. UNITEX
achieved sales of about USD 30 million in 2010.
Through this acquisition, LANXESS will gain access to UNITEX’s flexible
manufacturing facility coupled with an extensive portfolio of phthalate-free
plasticizers, including benzoates, citrates and trimellitates. UNITEX’s product
portfolio will strengthen LANXESS’ leading brands of phthalate-free
plasticizers, including Mesamoll, Unimoll, Adimoll and Ultramoll. The size of
the global phthalate-free plasticizers market is currently estimated at EUR 1.3
billion and is growing at seven percent per year.
“This transaction underlines our technology leadership in specialty chemicals
and strengthens our relationship with our customers in the USA – the world’s
largest chemical market,” said Rainier van Roessel, Board Member of LANXESS.
“I am delighted that UNITEX will be joining forces with LANXESS, whose focus on
technology and strong global standing will give the Greensboro team the platform
to achieve even more success,” said George W. Page, former President and owner
of UNITEX.
The transaction will close with immediate effect and LANXESS will finance the
acquisition from existing liquidity. The UNITEX business will be integrated into
the LANXESS business unit Functional Chemicals.
Phthalate-free plasticizers have been growing in demand due to legislative
initiatives in developed markets such as North America, Western Europe and
Japan. This trend is now also being seen in emerging markets around the world
such as Latin America. Regulators are calling for consumer products such as
toys, food packaging and cables to contain the flexible plastic PVC, which has
only been processed by phthalate-free plasticizers.
LANXESS already enjoys a leading position in the phthalate-free plasticizer
segment, driven by its current portfolio that includes the flagship product
Mesamoll – a 100%-phthatlate-free platicizer based on alkyl sulfonic esters. In
2007, the U.S. Food and Drug Administration (FDA) approved the use of Mesamoll
II in packaging for dry and aqueous-based food. In Europe, the European Food
Safety Authority (EFSA) has also approved the use of Mesamoll in food contact
applications.
Functional Chemicals (FCC) belongs to LANXESS’ Performance Chemicals segment and
is headed by Jorge Alberto Nogueira. Apart from specialty plasticizers, FCC
manufactures phosphorous chemicals and colorants. It employs about 450 people
mainly at its sites in Leverkusen and Krefeld-Uerdingen, Germany.
LANXESS Corporation based in Pittsburgh, PA, currently employs about 900 people
in the USA at nine locations and produces high-performance synthetic rubbers,
advanced industrial intermediates and specialty chemicals. LANXESS Corporation
achieved EUR 1.2 billion in sales in 2010.
LANXESS is a leading specialty chemicals company with sales of EUR 7.1 billion
in 2010 and currently around 15,800 employees in 30 countries. The company is at
present represented at 46 production sites worldwide. The core business of
LANXESS is the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals. LANXESS is a member of the leading
sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.
2012-02-22 Lanxess
LANXESS strengthens commitment to renewable
raw materials with investment in BioAmber
USD 10 million investment in U.S.-based BioAmber
Companies have developed phthalate-free plasticizers from bio-based succinic
acid
LANXESS is strengthening its commitment to renewable raw materials by investing
USD 10 million in U.S. company BioAmber, Inc.,
based in Minneapolis, Minnesota, U.S., as part of a private placement.
BioAmber is a global leader in succinic acid コハク酸
produced from renewable resources such as corn.
Together, the two companies have developed plasticizers, whose
cost-effectiveness and safety profile make them sustainable alternatives to
phthalate-containing formulations. Market entry is expected later this year. In
addition, both companies are in talks to extend their partnership into further
product areas in the future.
三菱化学は、生分解性プラスチック GS Plaの植物原料化に向け、バイオコハク酸の製品供給、研究開発及び製造について、米国のBioAmber（及び同社に既に出資している三井物産）と提携した。
BioAmberは旧称 DNP Green
Technology
As part of the investment, LANXESS has
received a minority shareholding in BioAmber and a seat on the Board of
Directors, which will be filled by Jorge Nogueira, head of LANXESS' Functional
Chemicals business unit that manufactures phthalate-free plasticizers. BioAmber
was founded in October 2008 and has 40 full-time employees.
BioAmber produces succinic acid through the fermentation of renewable raw
materials. The process developed by BioAmber consumes considerably less energy
than the production of succinic acid using fossil fuels, is significantly more
cost-effective and has a better carbon footprint. In the future, the company
plans to use waste from the agriculture industry and sugarcane processing as
starting materials.
“Our investment in BioAmber shows our commitment to launching a new generation
of plasticizers that meet regulatory requirements and can also score in terms of
sustainability,” said LANXESS’ Nogueira.
“We are pleased to have LANXESS as a strategic investor alongside Naxos,
Sofinnova, Mitsui & Co. Ltd. and Cliffton,” said Jean-Francois Huc, BioAmber’s
CEO. “BioAmber is fortunate to have a strong, committed group of investors and
we welcome Jorge Nogueira, a dynamic and experienced chemical industry
executive, to our board”.
Phthalate-free plasticizers gaining importance
As a global leader in the field of phthalate-free plasticizers, LANXESS has
large production capacities, expertise in production and a global distribution
network. Its key products include Mesamoll, Adimoll, Ultramoll, Unimoll and
Uniplex. Through the acquisition of the UNITEX Chemical Corporation based in
Greensboro, North Carolina, LANXESS also now has access to an additional
capacity of 50,000 metric tons per year, plus an extensive portfolio of
phthalate-free plasticizers such as benzoates, citrates and sulfonamides.
BioAmber manufactures bio-based succinic acid in Pomacle, France, at a plant
with 3,000 metric tons of capacity per year. BioAmber plans to add a further
17,000 metric tons of capacity from 2013 with a new world-scale manufacturing
facility to be built in Sarnia, Ontario, Canada, at LANXESS' site there. Both
companies are preparing agreements for LANXESS to provide BioAmber with the land
as well as the utilities and services needed to operate the facility.
The global market for phthalate-free plasticizers is currently estimated at EUR
1.3 billion – with annual growth rates of around seven percent. As a result of
regulatory developments, demand for phthalate-free plasticizers is growing in
markets such as North America, Western Europe and Japan. An increase in demand
is also being observed in global growth markets such as Latin America.
Authorities are increasingly restricting the use of phthalate-containing
plasticizers for consumer goods such as toys, food packaging and cables.
Bio-sourcing initiatives
LANXESS is strongly committed to using renewable raw materials to produce
premium synthetic rubbers. At the end of 2011, LANXESS produced the world’s
first bio-based EPDM rubber in Brazil. The Brazilian company Braskem supplies
the raw material ethylene derived from sugarcane. The rubber is marketed under
the name Keltan Eco.
In addition, LANXESS has invested in U.S. biofuel and biochemical manufacturer
Gevo, Inc., which produces isobutanol from renewable resources such as corn.
LANXESS plans to convert the isobutanol to isobutene, a key raw material for the
manufacture of butyl rubber.
LANXESS is a leading specialty chemicals company with sales of EUR 7.1 billion
in 2010 and currently around 16,100 employees in 30 countries. The company is at
present represented at 47 production sites worldwide. The core business of
LANXESS is the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals. LANXESS is a member of the leading
sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.
BioAmber is a next generation chemicals company. Its proprietary technology
platform combines industrial biotechnology, an innovative purification process
and chemical catalysis to convert renewable feedstocks into chemicals for use in
a wide variety of everyday products including plastics, food additives and
personal care products. BioAmber produces bio-succinic acid in what it believes
to be one of the world’s largest bio-based chemical manufacturing facilities.
For more information visit the company’s web site at www.bio-amber.com.
May 03, 2012 Lanxess
LANXESS strengthens its butyl rubber site in Belgium
Capacity expansion of 10 percent
completed ahead of schedule
Start-up of two new pilot plants to develop innovative and sustainable
production technology
Specialty chemicals company LANXESS is
strengthening its butyl rubber plant in Zwijndrecht, Belgium. The company has
significantly invested to expand the production capacity
of the existing plant and to build two new pilot plants
for the development of production technology for butyl rubber. LANXESS is one of
the world’s largest producers of butyl rubber, which is mainly used in the
production of tires. The biggest share of butyl rubber produced in Zwijndrecht
is premium halobutyl rubber.
The Leverkusen-based specialty chemicals
company operates three production plants in Belgium with around 1,500
employees through its two companies, LANXESS Rubber NV and LANXESS NV.
At the Zwijndrecht site, LANXESS Rubber NV manufactures butyl rubber,
primarily for the tire industry.
“This investment underpins the major role
that our butyl rubber production here in Zwijndrecht plays in our global
strategy. Our plans for continued growth are founded on innovation and
technology that serves the global megatrends – with the primary focus on
solutions for sustainable mobility,” said Axel C. Heitmann, Chairman of the
Board of Management at LANXESS, during the official opening ceremony.
Butyl rubbers are used in tire inner liners - the innermost, air- and
humidity-impermeable layer of a tubeless tire. They keep tire pressure constant
over a long period, thus making vehicles safer and ensuring they consume less
fuel and therefore produce fewer harmful emissions. Butyl rubbers can also be
used in the tread of a tire allowing better grip and comfort. Special
applications include protective clothing and medical devices. The use of butyl
in chewing gum production represents one particularly interesting niche market.
Capacity expansion to meet strong global demand
With the expansion, the capacity of the facility increased by 10 percent
up to 150,000 metric tons of butyl rubber per year
(from 135,000 tons). The expansion representing an investment of EUR 20 million
was completed at the end of 2011, several months ahead of schedule.
“In the coming decade, we expect demand to grow further so that the new
capacities here in Zwijndrecht and from our upcoming plant in Singapore will be
fully absorbed by the market,” said Ron Commander, Head of the business unit
Butyl Rubber at LANXESS.
In addition to the expansion in Zwijndrecht, LANXESS is building a
new butyl rubber facility on Jurong Island, Singapore,
with a total capacity of 100,000 metric tons per
year. The plant, which will be the most modern of its kind and represents the
company’s single-largest investment ever, is expected to start up in the first
quarter of 2013. LANXESS has another butyl rubber plant in Sarnia, Canada, with
a capacity of 150,000 metric tons per year.
New more energy efficient technology
The new pilot plants at Zwijndrecht have been built
in order to test an innovative production technology. The production process of
butyl rubber is highly complex and requires process steps at temperatures, which
range between minus 95 and up to plus 200 degrees Celsius. “As the technology
leader in the global market for synthetic rubber we are constantly driving
innovation. These pilot plants represent our large-scale implementation of the
new process we are developing. The aim of the new technology is to use fewer
resources and thus be more energy-efficient and environmentally friendly,”
Heitmann explained.
LANXESS in Belgium
With its four world-scale plants and more than 1,400 employees, Belgium is the
second largest country in terms of production within the LANXESS Group. Besides
the butyl rubber plant, LANXESS produces caprolactam and glass fibers –
intermediates for the high-tech plastics – and also rubber chemicals at its
plants in the Antwerp docklands.
May 23, 2012 Lanxess
LANXESS starts up new nitrile butadiene rubber plant in China
Joint venture with TSRC representing USD 50 million investment
Initial capacity of 30,000 metric tons per year
100 new jobs created
German specialty chemicals company LANXESS
has started up on schedule a nitrile butadiene rubber (NBR) plant in Nantong,
China, as part of its 50:50 joint venture with Taiwan’s TSRC Corporation. The
two companies have jointly invested USD 50 million (approx. EUR 39 million) in
the new plant, which has an initial annual capacity of 30,000 metric tons. Some
100 new jobs have been created through the investment.
China is the world’s biggest and fastest-growing NBR market, with a compound
annual growth rate of approximately 10 percent. Demand is above all being driven
by the automotive and construction industries.
“The new plant is the most modern of its kind in Asia and will address the needs
of the two leading megatrends in China – rapid urbanization and growing
mobility,” said Axel C. Heitmann, Chairman of the Board of Management at LANXESS,
during the official opening ceremony.
The two partners set up a joint venture in May 2010 called
LANXESS-TSRC (Nantong) Chemical Industrial Company Ltd. and supplied
Chinese customers with NBR produced at LANXESS’ La Wantzenau site in France
until the start-up of the Nantong plant.
The new plant is built on an area of around 40,000 square meters and is located
in the Nantong Economic and Technological Development Zone in Jiangsu province,
northwest of Shanghai. Construction was achieved with a perfect safety record.
LANXESS is the world’s largest producer of nitrile butadiene rubber, with a
portfolio of more than 60 grades. The most important Krynac grades will be
produced in Nantong. NBR products have a higher resistance to oil than
conventional rubbers. They also demonstrate a better resistance to ozone, UV
light, hot air and long-term aging.
Greater China (Mainland China, Hong Kong, Taiwan and Macao) is a cornerstone of
LANXESS’ global growth strategy and the company is targeting more than EUR one
billion sales there in 2012. All of LANXESS’ 13 business units are represented
at 10 sites in Greater China, with close to 1,000 employees in total.
LANXESS is a leading specialty chemicals company with sales of EUR 8.8 billion
in 2011 and currently around 16,700 employees in 30 countries. The company is at
present represented at 48 production sites worldwide. The core business of
LANXESS is the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals. LANXESS is a member of the leading
sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.
2012/5/31 Lanxess
LANXESS builds new plant for high-tech
plastics in Belgium
EUR 75 million investment in new polymerization plant in Antwerp
Completion planned for the first quarter of 2014
Annual capacity of 90,000 metric tons polyamide
Specialty chemicals company LANXESS is investing EUR 75
million in the construction of a new plant for high-tech plastics in
Antwerp. The world-scale facility for polyamide
plastics is designed for an annual capacity of 90,000
metric tons and scheduled to begin operation in the first quarter of
2014.
“This investment is yet another milestone on our way towards profitable growth,
and a clear commitment to our Antwerp site. High-tech plastics play a critical
role in our global strategy. Our plans for growth depend on innovations and
technologies that support the global megatrends. Activities therefore are
focused on solutions for sustainable mobility,” said Axel C. Heitmann, Chairman
of the Board of Management of LANXESS AG, at the groundbreaking ceremony for the
new polyamide facility. Global demand for high-tech plastics is expected to rise
by five to six percent each year through 2020. The automotive industry is one of
the main growth drivers for LANXESS plastics.
Antwerp is the heart of LANXESS plastics production
The new plant for the polymerization of high-tech plastics is being built in the
direct vicinity of the caprolactam facility operated by LANXESS in Antwerp.
Caprolactam is the key precursor for plastics manufacturing at LANXESS. “With
this new combination of facilities, we can supply our global network of
compounding plants with polyamide plastics right from Antwerp in the future.
That will make Antwerp the heart of our global business more than ever,” said
Michael Zobel, head of the LANXESS High Performance Materials (HPM) business
unit. All plastics manufactured at LANXESS in Antwerp will be processed within
the LANXESS global network of compounding facilities into the final Durethan-brand
products. The plastics are reinforced in some cases with glass fibers to further
improve their properties and adapt them to customer needs. The glass fibers
required for this purpose are likewise produced at a LANXESS facility in
Antwerp.
LANXESS supports the trend towards lightweight construction in the automotive
industry
The automotive industry is a key customer of the HPM business unit. Highly
innovative materials from LANXESS help to build much lighter plastic parts that
can replace metal ones in motor vehicles and thus contribute to reducing fuel
consumption and emissions. A lightweight design can reduce weight by ten to 50
percent, depending on the component. LANXESS plastics are used, for instance, in
engine applications, door structures, pedals, front ends and cockpit
crossmembers. Furthermore, the materials enable automobile manufacturers and
suppliers to achieve considerable savings both in production and through simpler
assembly. Another field of application for high-tech plastics from LANXESS is
the electrical/electronics industry.
Expansion of the global production network
LANXESS is greatly expanding its global production network for high-tech
plastics. New plants are currently also under construction in Gastonia, U.S.A.,
and Porto Feliz, Brazil. The company previously opened a new production plant in
Jhagadia, India, in January 2012, and recently doubled the capacity of its
existing plant in Hamm-Uentrop, Germany. LANXESS completed the expansion of
caprolactam production in Antwerp in 2011, increasing its former annual capacity
of 200,000 metric tons by ten percent. Likewise LANXESS invests in its glass
fiber facility in Antwerp’s harbor district. A first glass oven is being renewed
completely this spring, the second one follows in the spring of 2013. The annual
production capacity for glass fibers of 60,000 metric tons is being increased by
ten percent.
In the last 24 months, LANXESS has invested EUR 185 million in its global
production network for high-tech plastics, EUR 125 million of that in its plants
in Antwerp alone, including the new plastics facility.
The High Performance Materials business unit is part of the Performance Polymers
segment, which generated EUR 5.1 billion in total sales in fiscal year 2011. HPM
has roughly 1,500 employees worldwide and operates production facilities in
Belgium (Antwerp), Germany (Krefeld-Uerdingen and Hamm-Uentrop (JV)), China
(Wuxi) and India (Jhagadia).
LANXESS is a leading specialty chemicals company with sales of EUR 8.8 billion
in 2011 and currently around 16,800 employees in 30 countries. The company is at
present represented at 49 production sites worldwide. The core business of
LANXESS is the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals. LANXESS is a member of the leading
sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.
LANXESS to build world’s largest EPDM plant
in China
EUR 235 million investment
Capacity of 160,000 metric tons per year
Start-up 2015
Largest LANXESS investment in China to date
Up to 200 new jobs created
Production based on sustainable Keltan ACE technology
LANXESS hosts first-ever “Mobility Day” in Shanghai
LANXESS is building the world’s largest
plant for EPDM synthetic rubber in China. The
German specialty chemicals company is investing EUR 235
million in the plant in Changzhou
常州
(Jiangsu Province). This is the largest investment
the company has made in China to date.
The plant will have a capacity of 160,000 metric tons
per year and the investment will create up to 200 new jobs. The plant is
expected to start up 2015. All necessary permits
have been obtained from the local authorities.
LANXESS is the world's leading supplier of EPDM (ethylene propylene diene
monomer) following the successful acquisition and
integration of DSM Elastomers in 2011. It markets its products under the
brand name Keltan. Global demand for EPDM is expected to increase by more than
four percent per annum in the coming years, while demand in China is expected to
grow by around eight percent, driven above all by automotive and construction
industries. China will also continue to be the largest net importer of EPDM in
the coming years.
“We are strengthening our global EPDM asset base with a world-scale plant in
China to serve our local customers even quicker with premium products,” said
LANXESS CEO Axel C. Heitmann at today’s groundbreaking ceremony.
“This plant also represents our company’s third major rubber investment in Asia
and strengthens our credentials as the world’s leading provider of synthetic
rubber,” added Heitmann.
LANXESS will start up a world-scale butyl rubber plant on
Singapore’s Jurong Island in the first quarter of 2013 and will break
ground for a neighboring neodymium-based performance
butadiene rubber plant on September 11 this year.
The new EPDM plant will be located at the
well-established Changzhou Yangtze Riverside Industrial Park, with access to
excellent storage and ship uploading facilities. LANXESS will be supplied the
key raw materials ethylene and propylene from a
methanol-to-olefins (MTO) plant currently under construction at the site.
The MTO process is a new way to produce these key raw materials, which are
conventionally produced from refineries. During the construction phase, up to
2,000 people will be working on the site.
LANXESS is already active at the Changzhou site, with the construction of a
leather chemicals plant. The facility of up to 50,000 metric tons capacity per
year represents an investment of EUR 30 million and is planned to go on stream
by the first half of 2013. It will produce premium LANXESS leather chemicals for
the local Chinese market used in various applications like leather tanning,
dyeing and finishing. Some 100 jobs are being created.
Sustainable Keltan ACE technology
LANXESS will use Keltan ACE technology to enable sustainable production at its
new plant. In comparison to conventional technology, the Keltan ACE catalyst
technology reduces energy requirements for production and it does not require
catalyst extraction as a result of high catalyst efficiency. Furthermore, the
process enables the manufacture of new EPDM rubber grades, such as oil-extended
EPDM and special high molecular weight EPDM. The new plant will produce in total
ten premium grades of EPDM tailored to Chinese customer needs.
LANXESS already operates EPDM production sites in Geleen, the Netherlands, Marl,
Germany, Orange, USA and Triunfo, Brazil, with a combined capacity of 320,000
metric tons per annum. LANXESS plans to convert 50 percent of its total
production capacity at the Geleen site to Keltan ACE technology in 2013.
EPDM is used above all in the automotive industry as door sealants or windscreen
wipers. According to LANXESS estimates, approximately seven kilograms of EPDM is
used in every car. The product is also used in the plastics modification, cable
and wire, construction and oil additives industries. Its properties include very
low density, good resistance to heat, oxidation, chemicals and weathering as
well as good electrical insulation properties.
Since the end of last year, LANXESS has been commercially producing EPDM from
bio-based ethylene and marketing it under the brand Keltan Eco. LANXESS is using
ethylene supplied by Braskem S.A. In comparison to petroleum-based ethylene,
Braskem’s ethylene is produced by dehydrating ethanol from sugar cane.
China strategically important to LANXESS
China is a cornerstone of LANXESS’ global growth strategy. The company is
targeting sales of more than one billion EUR in Greater China (mainland China,
Hong Kong, Taiwan and Macao) in 2012. All of LANXESS’ 13 business units are
represented at 10 sites in Greater China, with roughly 1,000 employees in total.
LANXESS will be holding its first-ever “Mobility Day” in Shanghai on September
6. Under the motto “Sustainable Technologies for China’s Future”, the company
will be showcasing its latest products geared towards “Green Mobility”.
Around 400 participants from industry, academia and associations will exchange
ideas and discuss topics such as “Green Tires”, lightweight plastics,
sustainable leather management, technical rubbers and battery technology.
LANXESS achieved sales of some EUR 1.5 billion – around 17 percent of total
sales – with products and technologies for "Green Mobility" in 2011. And the
company expects this figure to rise by 80 percent to about EUR 2.7 billion in
2015.
LANXESS is a leading specialty chemicals company with sales of EUR 8.8 billion
in 2011 and currently around 16,900 employees in 31 countries. The company is
currently represented at 48 production sites worldwide. The core business of
LANXESS is the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals. LANXESS is a member of the leading
sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.
2013/1/3 Lanxess
Lanxess AG : One becomes two: Our new
business units Keltan Elastomers and High Performance Elastomers
One becomes two: Our new business units Keltan Elastomers and High
Performance Elastomers
Former Technical Rubber Products business unit splits into
Keltan Elastomers (KEL) and
High Performance Elastomers (HPE)
The Technical Rubber Products business unit
(BU TRP) was split into two separate business units. Since January 1, 2013,
Keltan Elastomers (core product ethylene-propylene-diene monomer - EPDM) started
trading as an independent business unit under the same name of Keltan Elastomers
(KEL).
The rest of the TRP product portfolio (NBR, HNBR, EVM and CR) fell under the
High Performance Elastomers (HPE) business unit.
By acquiring DSM's Keltan business in May 2011, TRP had significantly expanded
its EPDM business line to create by far the largest of all the business lines.
LANXESS has also strengthened its position as a leading supplier of
special-purpose rubbers. "The successful strategic development of EPDM to make
us a global market leader and the specific features of all TRP business
necessitate this split into two business units," says the former BU TRP head
Guenther Weymans.
Specific business requirements
Weymans took charge of BU KEL, which is headquartered in Geleen in the
Netherlands. Some 600 staff based here and also in Marl (Germany), Orange
(United States), Triunfo (Brazil) and Changzhou (China) will work for the BU
with its elastomer products (EPDM). The main applications of EPDM are hoses,
seals, belts and polymer additives.
Jan Paul de Vries, who was in charge of the Advanced Materials business line
EMEA of the High Performance Materials business unit (BU HPM), now heads up the
new BU HPE, which will be headquartered in Cologne*. Some 900 staff based in
Dormagen (Germany), Leverkusen (Germany), La Wantzenau (France), Orange (United
States) and Nantong (China) will focus on rubber specialties and
high-performance rubber.
Unlike BU KEL, whose business focuses exclusively on a single product, EPDM, BU
HPE's remit covers four different rubber grades and a far more diversified
product portfolio. "The reorganization will enable us to meet the very specific
demands this places on both business units far more effectively," explains
Weymans.
To make even better use of synergies in the future, around 100 existing TRP
staff from the Technical Service Center in Dormagen and the Polymer Testing
Center in Leverkusen - with its subunits in Qingdao (China) and Geleen
(Netherlands) - switched to the Innovation & Technology group function (GF INN),
also on January 1, 2013.
January 28, 2013 Lanxess
LANXESS to build new pigment plant in China
Investment of EUR 55 million
150 new jobs
Global pigment production network expanded
Urbanization as growth driver
Sustainable due to innovative production process
German specialty chemicals company LANXESS is
expanding its global production network for inorganic pigments in China. A new
high-tech facility for premium iron oxide red pigments
is being constructed at the Ningbo Chemical Park on
the Chinese East Coast.
The plant, with highly modern environmental standards, will initially have an
annual capacity of 25,000 metric tons. The
investment of about EUR 55 million will create 150 new jobs. Construction will
begin in the second quarter 2013. The production startup is scheduled for the
first quarter of 2015.
“We are committed to support our customers’ growth plans by ensuring a secure
supply of an extended range of innovative pigments based on leading German
technology,” said Rainier van Roessel, Member of the LANXESS` Board of
Management. “This investment also underlines LANXESS’ position as a key supplier
of innovative products for the megatrend urbanization.”
The megatrend urbanization has created an increasing demand for high quality,
sustainably produced pigments throughout the world.
Ningbo, located in the coastal province of Zhejiang, is China's second largest
cargo port. The location for the new plant is the Ningbo Petrochemical Economic
& Technological Development Zone (NPEDZ). The new LANXESS site will initially
cover roughly seven hectares. A further plot of similar size has been reserved
for potential expansion. The highlights of the industrial area are the
outstanding infrastructure and logistical links. The largest terminal for liquid
chemicals in China is located there.
LANXESS will manufacture high quality iron oxide red pigments at the new plant
using an improved and highly sustainable Penniman process. “With our advanced
and innovative production process, we are raising the bar for the production of
iron oxide pigments worldwide especially in terms of water treatment, waste gas
cleaning and energy consumption,” said Joerg Hellwig, Head of the Inorganic
Pigments business unit. “In addition, the new plant will strengthen our global
production network of existing plants in Germany, China and Brazil,” he added.
The company will market their yellow shaded red pigments globally under the
well-known brand Bayferrox. Key customers are manufacturers of paints and
coatings. Furthermore the construction and plastics industries will be supplied.
LANXESS already operates one of China’s largest and most modern plants for
iron oxide pigments in Jinshan金山区, Shanghai.
This plant has an annual capacity of 38,000 metric tons
of high-quality iron oxide yellow and black pigments each year.
With an annual capacity of more than 350,000 metric tons,
the LANXESS Inorganic Pigments (IPG) business unit is one of the world's
leading manufacturers of inorganic iron oxide and chromium oxide pigments. The
heart of global production is located in Krefeld-Uerdingen, Germany. The
business unit has close to 1,300 employees and is part of LANXESS’ Performance
Chemicals segment.
China plays a key role in LANXESS' global growth strategy. All 14 LANXESS
business units are represented with a total of around 1,000 employees at the 10
sites in Greater China. It represents about 10 percent of LANXESS’ Group sales.
LANXESS is a leading specialty chemicals company with sales of EUR 8.8 billion
in 2011 and currently around 17,100 employees in 31 countries. The company is
currently represented at 48 production sites worldwide. The core business of
LANXESS is the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals. LANXESS is a member of the leading
sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good as
well as the Carbon Disclosure Leadership Index (CDLI).
March 04, 2013 Lanxess
LANXESS strengthens standing as world’s leading high-performance rubber producer
Production switch to S-SBR 溶液重合法from E-SBR乳化重合法
in Triunfo, Brazil
EUR 80 million investment
Growing demand for “Green Tires” due to megatrend mobility and tire
labelling
Brazilian tire labelling expected in H2, 2016
S-SBR in combination with Nd-PBR achieves best performance in “Green Tires”
LANXESS is strengthening its standing as the
world’s leading producer of high-performance rubber. Following a feasibility
study, the German specialty chemicals company has decided
to convert production of emulsion styrene butadiene rubber (E-SBR) used
in standard tires to solution styrene butadiene rubber (S-SBR)
used in high-performance “Green Tires” at its site in
Triunfo (Rio Grande do Sul) in southern Brazil. LANXESS is the first
company to carry out such a conversion.
The future capacity for S-SBR in in Triunfo will be
110,000 metric tons per year, exactly the same as the current E-SBR
capacity. The switch in production technology represents an investment of
EUR 80 million, which will be financed from the
company’s cash-flow. Up to 500 temporary workers will be needed during the
conversion phase. The plant will produce the latest grades of S-SBR at the
end of 2014. A regular supply of E-SBR to customers
will be maintained from the company’s plant in Duque de
Caxias (Rio de Janeiro) in Brazil, which has enough production capacity
to supply the entire Brazilian E-SBR demand. E-SBR is mainly used in the
manufacturing and retreading of truck tires, which means tire carcasses can be
reused several times, thus saving raw materials for tire production.
LANXESS is the world’s largest producer of high-performance rubbers, including
S-SBR and neodymium-based performance butadiene rubber (Nd-PBR) sold under the
Buna brand name. Global growth for both rubber types is estimated at roughly 10
percent per year, up to 2017, as consumers shift to more fuel-efficient and
environmentally-friendly “Green Tires”.
“We are delighted to announce another major synthetic rubber investment in
Brazil, which underscores our commitment to our sites and employees here,” said
LANXESS Board Member, Werner Breuers, at a press conference in São Paulo today.
“We want to provide our customers with the best technology they deserve in order
to fulfill their expansion plans in this important market.”
New capacities to meet strong demand for “Green Tires”
Demand for “Green Tires” is being driven by the megatrend mobility, above all in
the regions of Asia and Latin America, as the middle class there becomes more
affluent. In addition, demand will accelerate as tire labeling continues to be
introduced around the world.
November 2012 saw the launch of mandatory tire labeling in the European Union
(EU), similar to the consumer labels found on refrigerators and washing
machines. Tires are graded from A (best) to G according to their fuel efficiency
and from A to F according to their wet grip. Rolling noise is also measured.
Therefore, the new legislation provides greater transparency for consumers by
highlighting the added value of “Green Tires”.
Japan and South Korea were the first countries in the world to introduce a
labeling system. After a voluntary tire label was introduced in Japan in January
2010, South Korea launched its voluntary labeling program in November 2011 and
introduced a mandatory label in December 2012. The Brazilian government aims to
implement tire labeling, modeled on the EU standards, as of October 2016, while
the topic in China is taking shape as part of the country’s current
five-year-plan.
Studies show that 20-30 percent of a vehicle’s fuel consumption and 24 percent
of road vehicle’s CO2 emissions are related to tires. “Green Tires” can reduce
fuel consumption by 5-7 percent and have a shorter cost amortization period in
comparison to other fuel-saving technologies in cars such as automatic
start-stop systems and hybrid drives.
“This means consumers can save real money in times of rocketing gasoline
prices,” said Breuers.
Synthetic rubber drives “Green Tires”
“Green Tires” can reach their peak performance with formulations containing both
S-SBR and Nd-PBR. S-SBR is mainly used in the tread compound of “Green Tires”
and Nd-PBR is used in the treads and sidewalls. While both rubbers help to
increase fuel efficiency of a tire by reducing rolling resistance, S-SBR helps
improves grip on wet roads, while Nd-PBR is highly resistant to abrasion thus
making tires more durable.
“We are now moving from the age of tire design to the age of tire materials,
which will make the difference in performance,” said Joachim Grub, Head of the
LANXESS’ Performance Butadiene Rubbers (PBR) business unit. “And here LANXESS is
playing a leading role in developing high-performance materials for the tires of
tomorrow.”
Last year, LANXESS showcased an “AA-rated” concept tire that was developed by
the company in Germany and tested by TÜV SÜD, one of the world's leading
independent technical service organizations. The concept tire comprises the
latest generation Nd-PBR and S-SBR technology, as well as rubber additives, to
achieve a grade of “A” for both rolling resistance and wet grip under the new EU
tire-labeling rules. It is one of the first tires in the world to achieve an
AA-rating.
Global asset base for high-performance rubber
In the past two years, LANXESS has increased its global capacities for the
high-performance rubbers S-SBR and Nd-PBR by 70,000 metric
tons per annum. The company has achieved this through debottlenecking
measures at its plants in Dormagen, Germany, Orange, USA and Cabo de Santo
Agostinho (Pernambuco), Brazil. In addition, the company produces S-SBR at is
facility in Port Jérôme, France.
In addition, the company broke ground for a new world-scale
Nd-PBR plant in Singapore last September to serve, above all, the
growing Asian tire industry. The plant, representing a total investment of EUR
200 million, will have a capacity of 140,000 metric tons per year and will start
up in the first half of 2015.
S-SBR and Nd-PBR belong to LANXESS’ Performance Butadiene Rubbers (PBR) business
unit. Alongside tires, performance butadiene rubbers are used for the
modification of plastics in the manufacture of High-Impact Polystyrene (HIPS)
for injection molding applications. Other applications include golf balls,
running shoes and conveyor belts. PBR is part of LANXESS’ Performance Polymers
segment, which achieved total sales of EUR 4 billion in the first nine months of
2012.
Successful growth story in Brazil
Brazil is one of the most successful and fastest-growing markets for LANXESS
products and a cornerstone of the company’s BRICS strategy. The country
accounted for less than one percent of LANXESS’ global sales in 2005 but now
accounts for roughly 10 percent of global sales. Marcelo Lacerda is Country
Representative for the company’s national activities. LANXESS became one of the
largest chemical companies in Brazil following its acquisition of Petroflex in
2008 and now employs roughly 1,100 workers at its headquarters and seven
locations.
LANXESS is a leading specialty chemicals company with sales of EUR 8.8 billion
in 2011 and currently around 17,100 employees in 31 countries. The company is
currently represented at 48 production sites worldwide. The core business of
LANXESS is the development, manufacturing and marketing of plastics, rubber,
intermediates and specialty chemicals. LANXESS is a member of the leading
sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good as
well as the Carbon Disclosure Leadership Index (CDLI).
June 25, 2013 Lanxess and Genomatica
First production of bio-based polybutylene terephthalate (PBT) in a world-scale
plant using 1,4-butanediol (BDO) made from renewable feedstock
20 tons of bio-based BDO made with
Genomatica’s process converted into PBT
Product quality of bio-based PBT fully within specification and equivalent
to petro-based PBT
LANXESS and Genomatica announce that LANXESS
has run a production campaign of bio-based PBT in
LANXESS’ world-scale production plant using 20 metric tons of
bio-based BDO made with Genomatica’s commercially-proven
process. This BDO fully complied with the demanding LANXESS
specifications for petro-based BDO allowing a direct feed of 100% bio-based BDO
into the continuous production process.
The properties and the quality of the resulting bio-based PBT are fully
equivalent to conventional petro-based PBT with regard to all tested parameters.
The world-scale PBT plant, with a capacity of 80,000
metric tons per year, is located in Hamm-Uentrop, Germany, and operated
as a joint venture in which LANXESS has a share of 50%.
Genomatica’s BDO process technology converts sugars – a renewable feedstock –
into the major chemical BDO in a patented, ’direct’ fermentation process.
“We were excited to validate the bio-based BDO made with Genomatica’s process as
a one-to-one replacement for petro-based BDO for the production of our PBT,”
said Hartwig Meier, Head of Global Product and Application Development of the
High Performance Materials Business Unit of LANXESS. “This is a strong signal to
the market and a tremendous step forward in our future plans to offer our
high-tech plastic Pocan in a bio-based version, too. Due to its unchanged
properties Pocan compounds based on bio-based PBT can directly be used in
established application fields such as automotive or electro & electronics area.
This fits very well with our strategy of ‘Green Mobility’.”
“LANXESS’ achievement proves how quickly bio-based monomers can be integrated
into world-scale polymer production plants when you deliver the exact same
performance for an existing, high-volume chemical,” said Christophe Schilling,
Ph.D., CEO of Genomatica. “This is additional proof that we got the details
right.”
About Genomatica
Genomatica is a widely-recognized technology leader for the chemical industry.
It delivers new manufacturing processes that enable its licensee partners to
produce the world’s most widely-used chemicals a ‘better way’, from renewable
feedstocks, with better economics and greater sustainability than
petroleum-based processes.
Genomatica’s first process, for BDO, is now commercial. Genomatica is also
developing processes for other high-volume chemicals, including butadiene.
Genomatica’s recognition includes the ‘Wall Street Journal Technology Innovation
Award’, ‘ICIS Top 40 Power Players: Ones to watch’, the ‘EPA Presidential Green
Chemistry Challenge Award’ and being voted two years in a row ‘No.1 in the
Biofuels Digest’s 30 Hottest Companies in Renewable Chemicals and Biobased
Materials’. More infiormation at www.genomatica.com.
July 04, 2013
LANXESS starts construction of the most modern iron oxide pigments site in China
World class environmental technology,
first time introduced at Penniman Red manufacturing process
Piling at site started beginning of July
Investment of EUR 55 million
Designed initial capacity of 25,000 metric tons per year
“New Red” production goes on stream in early 2015
German specialty chemicals company LANXESS
has just started piling for a premium iron oxide red pigments facility in
Ningbo.
LANXESS is investing EUR 55 million in the plant, which will have an initial
capacity of 25,000 metric tons annually. With the start of the piling process,
the construction work is proceeding right on schedule. New red iron oxide
pigments will be introduced to the global market in the first quarter of 2015.
Through its new plant, LANXESS will create 150 new, jobs in Ningbo.
In Russia, LANXESS is focusing on the megatrend of
mobility
LANXESS subsidiary Rhein Chemie produces rubber
additives for the automotive and tire industries at the Lipetsk site
Further expansion planned with the production of bladders for
the tire industry
German specialty chemicals company LANXESS today celebrated the opening of its
first production facility in Russia. In the new plant at the
Lipetsk site, LANXESS subsidiary
Rhein Chemie manufactures
polymer-bound rubber additives for the markets in Russia and the
Commonwealth of Independent States (CIS), primarily for the automotive and tire
industries. A production facility for the bladders used in tire production is to
be added in 2016. The overall investment volume in euros amounts to a
seven-digit figure and 40 new jobs will be created at the new plant in the
medium term.
“This production site underlines our focus on the global growth markets. That
applies both to the group as a whole and to Rhein Chemie, which now has its own
plants in all the BRIC markets,” says Rainier van Roessel, member of the Board
of Management of LANXESS AG. As recently as May this year, Rhein Chemie opened a
plant for high-performance bladders in Brazil.
“Opening our first production facility in Russia marks yet another milestone in
our long-term commitment to this market. Since entering the market in 2009, we
have quadrupled our sales in Russia and established strategic partnerships in
our target industries and with research institutes. The new facility will enable
us to harness market potential more effectively, particularly in the automotive
and tire industries,” explains Werner Breuers, member of the Board of Management
of LANXESS. Studies reveal that, in the medium term, annual percentage growth
rates for the Russian automotive and tire industries are expected to be in the
mid to high single digit range.
High-tech products for the automotive and tire industries
Lipetsk offers outstanding conditions for the group. “Its excellent location in
close proximity to our customers and the good infrastructure in the Lipetsk
Industrial Park were crucial to our decision to choose the site,” says Anno
Borkowsky, Managing Director of Rhein Chemie Rheinau GmbH. Every year, the
company will produce up to 1,500 metric tons of predispersed, polymer-bound
Rhenogran rubber additives at the plant in Lipetsk. Rhein Chemie is a leading
supplier for these products, which are used primarily in the manufacture of car
tires and technical elastomer products such as profiles, hoses and seals. They
are easy to handle and enable faster processing in the rubber compound. Using
Rhenogran also significantly increases the quality of rubber components and
improves their long-term functionality and durability.
A facility capable of producing up to 80,000 Rhenoshape bladders annually is to
be added to the complex in 2016. Bladders are used in the tire industry to give
tires their final form and properties. “We are seeing a rise in demand from the
Russian automotive and tire industries for quality products and, thanks to our
new plant and high-quality, innovative product portfolio, we can now cater to
their needs directly from Russia,” comments Borkowsky.
Strong development in Russian business
LANXESS has had its own company in Russia since 2009. During this time, business
has developed strongly. In 2012, LANXESS achieved sales of approximately EUR 80
million on the Russian market, around four times as much as in 2009. LANXESS has
been working closely with the Russian Academy of Sciences in the field of
research and development since 2009 and has established a research network with
leading Russian institutes and universities. In addition, the group contributed
to the official Germany Year in Russia in 2012 with the “LANXESS Young Euro
Classic Concert Russia” and a scientific symposium featuring high-profile
speakers.
LANXESS is a leading specialty chemicals company with sales of EUR 9.1 billion
in 2012 and roughly 17,400 employees in 31 countries. The company is currently
represented at 50 production sites worldwide. The core business of LANXESS is
the development, manufacturing and marketing of plastics, rubber, intermediates
and specialty chemicals. LANXESS is a member of the leading sustainability
indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good as well as the
Carbon Disclosure Leadership Index (CDLI).
July 01, 2013
LANXESS successfully completes conversion to ACE technology at Geleen EPDM site
The largest production line for the Keltan-branded EPDM synthetic rubber at the
LANXESS’ site of Sittard, Geleen, The Netherlands, has been successfully
converted to the company’s innovative ACE technology.
“This is another important step into an even more sustainable future with
LANXESS,” said Torsten Derr, Head of LANXESS’ business unit Keltan Elastomers (KEL).
“We have also completed this conversion on time and in budget.”
The German pioneer in synthetic rubbers development has invested roughly EUR 12
million to convert the production line from conventional Ziegler-Natta chemistry
to its innovative ACE-process. The new line – EPT 3 – has
a capacity of 95,000 metric tons per year. This is more than half of the
total capacity at that plant. It is currently the world’s largest EPDM plant
with an annual capacity of 180,000 metric tons.
Annual savings of EUR 100 million from
2015
Efficiency improvements and targeted restructuring
Strategic options for non-core businesses
Key capex projects on track
Future acquisitions predominantly focused on Advanced Intermediates and
Performance Chemicals segments
LANXESS is countering the challenging
business environment with a comprehensive efficiency program. Currently, it is
foremost the synthetic rubber activities that are experiencing a temporary
weakness in demand, increased competition in the market and volatile raw
materials prices. As part of the “Advance” program, the company therefore plans
to reduce costs and headcount, as well as optimize its portfolio.
“Due to the current situation we must now take action,” said LANXESS’ Chairman
of the Board of Management, Axel C. Heitmann, at today’s Media Day. “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.”
Heitmann confirmed the company’s full-year guidance for 2013 of EUR 700-800
million EBITDA pre exceptionals, excluding potential inventory devaluations.
Greater efficiency
As part of the “Advance” program, LANXESS is aiming to achieve about EUR 100
million in annual savings from 2015 onward through efficiency improvements and
targeted restructuring. This will lead to a headcount reduction of about 1,000
employees worldwide by the end of 2015.
The positions will be phased out through a voluntary separation program, which
includes early retirement packages and severance pay. In addition, the variable
compensation for the current business year will be reduced for those who are
eligible. This includes the Board of Management. All measures are being
coordinated with employee representatives.
Restructuring has already been implemented within the Rubber Chemicals business
unit, which is closing a site in South Africa and downsizing its operations in
Belgium. In addition, LANXESS will adjust its business operations globally to
reflect the current market situation. The company will also continue with its
proven flexible asset management strategy.
In total, some EUR 150 million in one-off charges will be booked in 2013 and
2014 to cover the “Advance” program.
Portfolio management
LANXESS will maintain its current structure of 14 business units under its three
established segments. At the same time, the company is pursuing
strategic options for specific non-core businesses.
These non-core activities have combined sales of roughly EUR 500 million, close
to EUR 30 million in EBITDA pre exceptionals, and a headcount of roughly 1,000.
The activities include
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, USA, 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.
Perlon-Monofil GmbH is a subsidiary of
Lanxess and manufactures a wide range of Polyamid and Polyester monofilament
products for different applications sold on the world market under the brand
names Perlon®, Atlas® and Bayco®.
“Each of these businesses is well positioned
in its market, but can develop better over time with a different partner,” said
Heitmann.
As part of its portfolio management activities over the mid- to long term,
LANXESS is predominantly targeting acquisitions that will strengthen its
Advanced Intermediates and Performance Chemicals segments and thus further
diversify the Group’s structure.
“Any potential additions to the company must present a clear strategic and
cultural fit, as well as being accretive to key financial metrics,” said
Heitmann.
Key capex projects
LANXESS will continue to give priority to organic growth. Capital expenditures
have been reduced to roughly EUR 600 million this year, while at the same time
key strategic projects are being implemented. In the future, the focus will be
more on smaller projects and debottleneckings.
LANXESS is currently pushing ahead with three important investment projects
serving the megatrend mobility. They are 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. Construction is progressing according to
plan.
LANXESS believes the long-term growth fundamentals are intact despite the
temporary weakness in demand. Heitmann: “We will continue to differentiate
ourselves from our competitors as a result of our focus on high-performance
products.”
“Our investments in plants for high-performance rubbers and lightweight
materials strengthen our position as one of the leading suppliers to the tire
and automotive industries and will serve us very well when the markets recover,”
said Heitmann. “They will also bring us closer to our mid-term earnings goal of
EUR 1.8 billion EBITDA pre exceptionals in 2018.”
Feb 9, 2015
Reuters
Lanxess in talks to take investor onboard for tyre rubber unit
* Lanxess in talks to sell stake in rubber unit-sources
* Russia's NKNK, Saudi Aramco main suitors-sources
* Lanxess says looking at strategic options, including JV
* Shares rise 2.4 percent, reach 4.5-month high
Germany's Lanxess is in
talks with Russia's NKNK and
state-owned Saudi Arabian Oil Company
(Saudi Aramco) to sell a stake in its tyre rubber business,
people familiar with the matter told Reuters on Monday, as
it battles overcapacity and weak prices.
Lanxess had previously
said it was searching for a partner for a production or
marketing alliance to tackle
production overcapacity and weak prices in the
synthetic rubber industry.
In a statement on Monday,
Lanxess said strategic options were being considered for the
unit, particularly a joint venture, and that a deal may
cover only parts of the rubber business. Lanxess declined to
comment further.
Asian rivals are
challenging its dominant position in synthetic rubber with
plans to bring more capacity on stream this year.
NKNK, also known as
Nizhnekamskneftekhim, is based
in the in the Russian Republic of Tatarstan and it competes
with Lanxess in so-called Nd-PBR rubber, used in fuel
efficient tyres.
Saudi Aramco has been
seeking to make inroads into more advanced chemicals to
diversify away from its oil and basic petrochemicals
businesses.
Shares in Lanxess, the
world's biggest maker of synthetic rubber for car tyres,
earlier rose to their highest in 4-1/2 months after a report
by Bloomberg that the company was in talks with Saudi Aramco,
among others, to sell a minority stake in its synthetic
rubber unit.
Bloomberg reported that
two proposals had been submitted, with one party interested
in a stake of about 40 percent.
Saudi Aramco and NKNK
were not immediately available for comment.
Two people close to
Lanxess told Reuters the firm had previously held talks with
petrochemicals companies such as LyondellBasell and India's
Reliance. Officials at the two groups were not immediately
available for comment.
Industry experts said the
synthetic rubber business could have a price tag of about
6-7 times annual core earnings if a competitive bidding can
be arranged.
That would value all of
the Performance Polymers division, which contains the bulk
of Lanxess' synthetic rubber businesses, at roughly 2-2.4
billion euros ($2.3-$2.7 billion), based on Warburg Research
estimates for the division's 2015 earnings.
It remains unclear,
however, whether Lanxess is looking to sell all or only some
businesses within Performance Polymers and how big a stake
the suitors are eyeing.
Shares in Lanxess closed
2.2 percent higher at 45.62 euros, reaching their highest
since late September and outperforming a 1.7 percent fall of
Germany's blue-chip index.
Lanxess, whose former
parent company Bayer invented synthetic rubber, is due to
report 2014 financial results on March 19. ($1 = 0.8821
euros) (Additional reporting by Maria Sheahan in Frankfurt
and Amena Bakr in Qatar; Editing by Victoria Bryan, Susan
Thomas and David Evans)
2015/3/19
2014年実績発表
・Optimization of rubber production networks
initiated: stop of EPDM rubber production in Marl intended for the end of 2015
The company has also initiated the first
measures from the second phase, which is aimed at improving operational
competitiveness. In light of current market overcapacities for synthetic
rubbers, LANXESS is optimizing its production networks for ethylene propylene
diene monomer (EPDM) rubber and neodymium-based performance butadiene rubber (Nd-PBR).
The company intends to
stop EPDM rubber production at its Marl, Germany, site at the end of
2015. Within LANXESS’ EPDM production network, the Marl facility is the least
competitive due to economy of scale limitations and comparatively high energy
and raw material costs.
The workforce in Marl currently totals around
120 people. LANXESS will be entering into negotiations with employee
representatives without delay in order to find mutually acceptable solutions for
these employees.
During the course of 2016, LANXESS will be focusing Nd-PBR
production at its sites in Dormagen, Germany, and Singapore. The Nd‑PBR
facilities at the sites in Orange, United States,
and Cabo de Santo Agostinho, Brazil, will then
exclusively serve the respective region. The capacities thus freed up at the
facilities in Port-Jérôme, France, and Orange, will be
used in the future to manufacture other butadiene rubber grades. In
addition, LANXESS reduces the capacity to use for butadiene rubbers in Orange as
part of its flexible asset management, operating only three out of four
production lines simultaneously.
Following the reorganization, LANXESS would have one production facility each
for EPDM and Nd-PBR rubber in North America, Latin America, Asia and Europe.
The company anticipates a reduction of around 140 positions as well as
exceptional charges of some EUR 55 million for the reorganization of its
production networks for EPDM and Nd-PBR. From the end of 2016, it expects to
achieve annual savings of around EUR 20 million.
Specialty rubber manufacturer Lanxess will announce the company it is to partner
with in the rubber business in early November, a spokesperson said.
The partnership will mark the third and final phase of the company’s realignment
program which started in November 2014 in a bid to improve performance.
Saudi Aramco is reportedly among the leading
potential partners for Lanxess, with other experts suggesting that Russian
petrochemical group Sibur is also in the frame.
“The third phase will focus on improving the competitiveness of the business
portfolio, especially through cooperations in the rubber business. Lanxess is
currently in talks with potential partners and will report on further steps in
the second half of 2015,” the company announced in May.
The second phase, launched earlier in March, aims at improving operational
competitiveness. This included the closure of an EPDM plant in, Marl, Germany,
and realignment of production networks for EPDM and neodymium-based performance
butadiene rubber (Nd-PBR).
Lanxess is currently in talks with both customers and employees about the
closure of its EPDM plant in Marl, and will shift
production elsewhere. The facility will close down on schedule at the end of
2016, concluding the realignment program.
The firm said about 140 employees will be affected from the re-alignment of its
rubber production footprint. In May, Lanxess said it anticipates exceptional
charges of about $58.7 million associated with the reorganization of its EPDM
and Nd-PBR production network along with annual savings of about $21.3 million
from the end of 2016.
The first phase of the program included reducing 1,000 positions of its work
force, which Lanxess said now consists of about 16,700 people in 29 countries
with 52 production sites. The firm also consolidated to 10 business units from
14 and to 12 group functions from 16. The first phase will achieve about $160
million in annual savings by the end of 2016.
2015-09-22
LANXESS and Saudi Aramco create world-leading joint venture for synthetic rubber
The world’s largest producer of synthetic
rubber and the world’s largest oil and energy producer enter strategic
alliance
LANXESS and Saudi Aramco will each hold a 50 percent interest in the joint
venture
Joint venture valued at EUR 2.75 billion
Zachert comments: “This will create one of the world’s best positioned
synthetic rubber companies. LANXESS will return to growth considerably
sooner than expected.”
LANXESS plans to leverage the deal for growth, debt reduction and share buy
backs
The specialty chemicals company LANXESS and
Saudi Aramco plan to establish a joint venture for synthetic rubber detailed in
an agreement signed today. LANXESS and Saudi Aramco subsidiary, Aramco Overseas
Company, will each hold a 50 percent interest in the joint
venture, with annual sales of approximately three billion Euro in 2014.
Saudi Aramco is to pay approx. EUR 1.2 billion in
cash for its 50 percent share after deducting debt and other financial
liabilities. The total joint venture is valued at EUR 2.75 billion.
The transaction still requires the approval of the relevant antitrust
authorities and is expected to be completed in the first half of 2016.
LANXESS will contribute its synthetic rubber business
to the new joint venture. This will include the Tire & Specialty Rubbers (TSR)
and the High Performance Elastomers (HPE) business units, their 20 production
facilities in nine countries and some 3,700 employees and additional support
staff. The high-performance rubbers manufactured by LANXESS are mainly used in
the production of tires and technical applications such as hoses, belts and
seals. The main customers include the automotive and tire industries but the
products are also used in the construction industry and by oil and gas
companies.
Saudi Aramco will provide the joint venture with competitive and reliable access
to strategic raw materials over the medium term.
The joint venture brings together the world’s largest producer of synthetic
rubber and the world’s largest oil and energy producer to form a far-reaching
strategic partnership. “This alliance will enable us to give the rubber business
a very strong competitive position and the best possible future perspectives”,
said LANXESS CEO Matthias Zachert. “Together in the future we can produce
synthetic rubber in an integrated value chain from the oil field to the end
product, thus establishing one of the best positioned suppliers in the world
market. In this way, we will be able to offer our customers even greater
reliability than before.”
Abdulrahman Al-Wuhaib, Senior Vice President Downstream, Saudi Aramco said:
“Through the joint venture agreement we are investing in a world-class synthetic
rubber and elastomer products capability that already supplies many of the
world’s largest tire and automotive-parts manufacturing customers. In addition
to creating a new revenue stream for Saudi Aramco, the agreement will spur
economic growth and diversification opportunities for the Kingdom of Saudi
Arabia and the Middle East region in high-volume sectors, such as tire and
auto-parts manufacturing, that are dependent on higher-margin, value-added
chemicals products.”
The new joint venture will be managed by a holding company headquartered in the
Netherlands. The CEO will be appointed by LANXESS and the CFO will be appointed
by Aramco Overseas Company. Each company will have equal representation on the
JV’s board of directors. LANXESS will consolidate the JV’s financials.
With the creation of this joint venture, LANXESS is implementing the third stage
of its three-phase realignment program. “We have established a completely new
strategic starting point for our company in just over a year”, said Zachert.
“Not only have we streamlined our administrative functions and already made many
of our production structures and processes more efficient but with this joint
venture in the rubber business we are delivering on the most important phase of
our realignment – with the best partner possible and in a very short period of
time. The resulting financial headroom will allow us to return to growth
considerably sooner than expected.”
LANXESS plans to use around EUR 400 million of the proceeds from the transaction
to invest in the growth of the well-positioned and less cyclical segments
Advanced Intermediates and Performance Chemicals. Another roughly EUR 400
million is earmarked for a further reduction of its financial debt position and
around EUR 200 million are planned to be used for a share
buyback program.
Lanxess, Aramco Form $3.1 Billion Venture to
Buoy Rubber Unit
Lanxess AG and Saudi Arabian Oil Co. said they will form a 2.75 billion-euro
($3.1 billion) venture to draw on the Middle East company’s access to raw
materials and make a struggling synthetic-rubber division more competitive.
Each party will hold 50 percent in the business, the two companies said in
statements Tuesday. Saudi Aramco will pay about 1.2 billion euros in cash for
the stake, adjusted for debt and payables. Bloomberg earlier reported the
planned transaction.
The oil-and-gas major outbid suitors including Ineos Group AG, according to
people familiar with the situation. Berenberg in a July report said that Aramco
would be among the “very well-fitting potential partners.” On its own, Lanxess
suffered from higher costs for raw-materials such as benzene and styrene at a
time when the market for its synthetic rubbers is in a phase of oversupply.
Lanxess Chief Executive Officer Matthias Zachert, who returned to the company to
take the helm in April 2014 after a previous stint as finance chief, is
transforming the business. As well as seeking a partner for the rubber business
to reduce exposure to that industry, he has also cut jobs and streamlined
production.
Lanxess will contribute its tire and specialty rubber operations and an
elastomers unit. The sale will provide Zachert with the financial flexibility to
expand other areas of the business less tied to the automotive industry, such as
chemicals to treat water supplies.
For Saudi Aramco, the deal marks a move from oil, gas and petrochemicals to a
downstream industry that synthesizes these inputs for clients making tires and
automotive parts. It will heighten a rivalry with Saudi Basic Industries Corp.,
which expanded into plastics with the purchase of General Electric Co.’s
polymers division for about $11.6 billion in 2007.
Under the leadership of its new chief executive, Amin al-Nasser, Saudi Aramco is
looking to become one of the world’s largest integrated energy companies by the
end of this decade. It’s building a $20 billion chemical plant in Jubail with
Dow Chemical Co. that will be fully operational next year, and creating special
zones to manufacture end products using its chemicals around its new refineries
in Jubail, Rabigh and Jazan. It’s building another one around Sadara, its
chemical venture with Dow in Jubail, and earlier this year obtained $10 billion
in loans to finance mergers and acquisitions.
Sabic Links
“Value added, technology transfer, job creation and the possibility of opening
up Saudi Arabia’s petrochemical industries to international players makes
economic sense for the country and sets the stage for further downstream related
acquisitions in the future," said Mohamed Ramady, an independent energy analyst
and former Professor of Finance and Economics at King Fahd University of
Petroleum and Minerals at the city of Dhahran, where Saudi Aramco is based.
“The Aramco move comes on the heel of SABIC and Exxon Mobil’s plans to expand
their Saudi based petrochemical joint venture Kemya, pointing towards a possible
future strategic linkage between Aramco and SABIC in the domestic and
international petrochemical sector to achieve economies of scale, expertise,
marketing and financing," Ramady said by email.
23-Oct-2015
Lanxess and Chongqing Changshou Chemical agrees new JV to market polychloroprene
rubber and adhesive products
German specialty chemicals company Lanxess
entered into an agreement with Chongqing Changshou
Chemical 重慶長寿化工
to establish a 50:50 Joint Venture (JV), which will act as the
exclusive agent of polychloroprene rubber and adhesive
products for both companies.
The transaction is pending for approval and is expected to be completed in the
first half of 2016.
"Combining the strengths of Chongqing Changshou Chemical's sales channel and
fairly complete product range with Lanxess' expertise in product quality and
brand value will surely result in a win win cooperation and enhance the
competitiveness of both companies' products," said Jan Paul de Vries, Head of
Lanxess' High Performance Elastomers business unit.
At present, the JV will concentrate on marketing and sales of polychloroprene
rubber and (solid) adhesive grades of both companies. Lanxess produces
polychloroprene rubber at its Dormagen site in Germany. It is marketed under the
name Baypren.
Applications of Baypren high performance rubber include the automotive sector,
where they are used to make windshield wipers, hoses, belts, seals, insulating
foams and air springs, Lanxess stated.
"China is the world’s largest chloroprene rubber market. With the advancement of
urbanization, the growth of the automotive industry and the continuous expansion
of China’s railway transportation network, local demands for polychloroprene are
expected to keep growing in the long run," said Chien Ming Cheng, CEO of Lanxess
Greater China. "The alliance will add to our advantages and facilitate our
growth in the local market."
LANXESS and Saudi Aramco rubber joint
venture to be launched on April 1, 2016, under the name ARLANXEO
Relevant
antitrust authorities have cleared the transaction
Transaction can already be completed on April 1, 2016
LANXESS
CEO Matthias Zachert: “ARLANXEO will be a strong company of two
strong partners”
Specialty chemicals company LANXESS and
Saudi Aramco have announced ARLANXEO, the name of their new joint venture
for synthetic rubber. The new name and logo combines elements from the names
and logos of both partners. The logo is complemented by the descriptor
“Performance Elastomers” to highlight the new company’s product range.
All relevant antitrust authorities have cleared the transaction. Hence, the
joint venture will be launched as ARLANXEO on April 1, 2016.
“ARLANXEO will be a strong company of two strong partners. This is also
reflected in the new name of the company,” said Matthias Zachert, Chairman
of the Board of Management of LANXESS AG and future Chairman of the
Shareholders’ Committee of ARLANXEO. “We will establish ARLANXEO as a new
and independent player in the global market for synthetic rubber. And we are
convinced that, in the world of rubber, ARLANXEO will become a strong
brand.”
“Under its new name, ARLANXEO will build on the customer focus, recognition
and reputation of both Saudi Aramco and LANXESS, which both partners are
very proud of,” said Abdulrahman Al-Wuhaib, Senior Vice President
Downstream, Saudi Aramco.
On September 22, 2015, LANXESS and Saudi Aramco signed an agreement to
create a 50:50 joint venture for the development, production, marketing,
sale and distribution of synthetic rubber used in the global tire industry,
auto-parts manufacturing and a wide range of other applications.
ARLANXEO will be headquartered in the Netherlands. The partners will soon
appoint the management team that will run the joint venture. Each partner
will have equal representation on the boards overseeing the company. The CEO
will be appointed by LANXESS and the CFO by Saudi Aramco.
“With this joint venture of the world’s largest producer of synthetic rubber
and the world’s largest integrated energy company, we have laid the
foundations for the sustainable and positive development of ARLANXEO,” said
Zachert. “This is a win-win for our customers as well as for the employees
of ARLANXEO. We are looking forward to the launch of this promising new
partnership.”
---------
2016/6/24
Arlanxeo opens headquarters in Netherlands Comments Email
Arlanxeo Holding B.V. officially opened its
new headquarters in Maastricht on June 22.
The firm launched in April as a 50/50 joint venture between Lanxess A.G. and
Saudi Aramco for synthetic rubber. Arlanxeo said it will control all of the
firm’s global operations from Maastricht.
2016-09-26
LANXESS Announces Plan to Acquire
Chemtura
A
major global additives business to emerge through the
acquisition
LANXESS significantly expands footprint in North America
US-Group Chemtura with sales of approximately EUR 1.5 billion
and EBITDA pre exceptionals of approximately EUR 245 million in
the last four quarters
Expected annual synergies of EUR 100 million by 2020
EV/EBITDA
multiple of 7x (including synergies)
Significant step towards creating ‘new’ LANXESS
Chemtura
は2005年にCrompton とGreat Lakes Chemical
が合併して設立された会社で、樹脂添加剤では世界最大のメーカー。ほかに農薬、石油添加剤、ウレタンポリマー等を生産している。農薬は旧Uniroyal
の事業。
Great
Lakes Chemical
は水処理剤、家庭用クリーナー、難燃剤、安定剤等のメーカー。
Chemturaは2006年10月末に、コア事業への集中のため、ルイジアナ州に工場を持つEPDMとゴム薬（中国のChemtura-CNCCC
Danyang Chemical の持分を含む）及び、全世界のオゾン劣化防止剤事業を売却する覚書を締結したと発表したが、同社は11日、相手先が化学分野を対象とする投資会社のLion
Chemical Capital であることを明らかにした。
Lion Chemical Capital は2007年に契約を変更し、中国JV持分とオゾン劣化防止剤事業は返却した。
LANXESS reaches the next milestone on
its growth path: The specialty chemicals company announced plans to
acquire US-based Chemtura Corporation, one of the major global providers
of high-quality flame retardant and lubricant additives. With the
largest acquisition in its history, LANXESS is building on its own
additives portfolio and will become one of the world’s major actors in
this growing market.
The companies have signed a definitive acquisition agreement. Under the
terms of the agreement, Chemtura shareholders will receive USD 33.50 per
share in cash for each outstanding share of common stock held, which
represents a 18.9% premium to the stock’s closing share price of USD
28.18 on September 23, 2016. The transaction with an enterprise value of
approximately EUR 2.4 billion will be
financed by LANXESS mainly through senior and hybrid bonds, as well as
from existing liquidity. The transaction, which is expected to close
around mid-2017, is subject to approval by Chemtura shareholders,
required regulatory approvals and certain other customary closing
conditions.
Headquartered in Philadelphia, Pennsylvania, Chemtura has 20 sites in 11
countries and approximately 2,500 employees worldwide. The company
reported sales of around EUR 1.5 billion in the last four quarters with
EBITDA pre exceptionals of approximately EUR 245 million (EBITDA margin
of approx. 16%). Approximately 45% of Chemtura’s revenue is generated in
North America. In addition to additives, Chemtura’s portfolio includes
urethanes and organometallics.
“With this acquisition, we are forming a champion in the field of
additives and are strengthening our already profitable portfolio,” said
Matthias Zachert, Chairman of the Board of Management of LANXESS AG.
“Through the acquisition, we are further implementing our strategy to
become a more resilient and profitable chemical company. We are
significantly building on our competitive positioning in medium-sized
markets and increasing our presence in North America. LANXESS is taking
a next and major step forward on its growth path.”
“The transaction provides premium value to our shareholders and benefits
our customers and employees by making Chemtura part of a much larger,
stronger global enterprise with the resources to fully support a more
diverse suite of specialty chemicals products and services,” said Craig
A. Rogerson, President, Chief Executive Officer and Chairman of the
Board of Chemtura.
For LANXESS, the acquisition of Chemtura will be accretive to earnings
per share (EPS) in the first fiscal year, with annual synergies of
approximately EUR 100 million expected by 2020. LANXESS is paying an EV/EBITDA
multiple of approximately 7x including synergies for this transaction,
meeting its target of 7-9x for acquisitions including synergies.
LANXESS strengthens profitable business with flame
retardant and lubricant additives
Chemtura’s two additive segments form the main pillars of the company’s
business. Both will, together with LANXESS’ Rhein Chemie Additives
business unit (ADD), form the new Performance
Additives segment after the closing of the transaction. ADD
already offers a wide range of specialty additives and service products
for the plastics, rubber, lubricants and colorants production, and
employs around 1,600 employees worldwide at more than 20 locations.
“Additives is a very attractive business field in specialty chemicals.
In addition to their relatively low capital intensity, they require
strong expertise and enable customized solutions. In this area, both
Chemtura and LANXESS have long-standing expertise,“ said Anno Borkowsky,
head of the LANXESS business unit Rhein Chemie Additives.
The first pillar of Chemtura’s additives business includes
lubricant additives and synthetic lubricants for industrial
applications, such as in power generation and aviation. “Chemtura holds
a competitive position in industrial lubricant additives. Moreover,
Chemtura manufactures the necessary precursors and intermediates.
Combined with our own additives portfolio, we will be a major supplier
for industrial lubricants and will further strengthen our
competitiveness through our integrated value chain,” explained Borkowsky.
LANXESS expects the industrial lubricant additives market to grow at an
annual rate of three to four percent in the medium term, primarily
driven by steadily increasing requirements with respect to the
performance and environmental sustainability of lubricants.
The second pillar is mainly comprised of the brominated flame retardant
additives, elemental bromine and further bromine derivatives businesses.
Brominated flame retardant additives are used because of their high
effectiveness, especially in the construction industry for insulation
and in the electronics industry. Chemtura is a major supplier of bromine
and brominated products and is well positioned due to its backward
integration. “Flame retardant requirements continue to rise mainly due
to the trend for energy-efficient construction,” said Borkowsky, adding:
“With this acquisition, we will become a major global supplier of high
performance flame retardant additives. In the future, we can offer our
customers brominated and phosphorous-based products from one source.”
Rhein Chemie Additives already has a competitive position in the
phosphorous-based flame retardants business and features a backward
integrated value chain. LANXESS also expects medium-term growth rates of
three to four percent per year in the field of flame-retardant
additives.
New business fields for LANXESS: Urethane and
Organometallics
Chemtura’s urethane business is a major
provider for hot-cast prepolymers and for special, aqueous urethane
dispersions and polyester polyols. These are components for special
polyurethanes, which are used mainly in the construction, mining,
oil/gas, sports and electronics industries. For example, rollers for
conveyor belts and roller skates are manufactured from these
polyurethanes. The urethanes business will be integrated into LANXESS’
High Performance Materials segment, in which the high-tech plastics
business is anchored.
Chemtura is counted among the major companies worldwide in
organometallics. Organometallics are
chemical compounds that are used, among other things, as catalysts in
polymer production and for synthesis of fine chemicals and
pharmaceuticals. This business will in the future be part of LANXESS’
Advanced Industrial Intermediates business unit.
2018-02-08
LANXESS successfully completes
acquisition of Solvay’s phosphorus additive business
Specialty chemicals company LANXESS has
successfully completed the purchase of the phosphorus chemicals business
from Belgian chemicals group Solvay including its U.S. production site in
Charleston, South Carolina. All relevant antitrust authorities have cleared
the transaction. LANXESS and Solvay agreed to the purchase in mid-November
2017.
The site in Charleston includes six production plants, where roughly 90
employees manufacture phosphorus chloride plus numerous derivative products
such as flame-retardant additives and intermediate products for
agrochemicals. The business represents annual sales of roughly EUR 65
million.
The acquisition is another consistent step in the Group’s growth strategy
with a focus on mid-sized markets and the North America and Asia regions.
-------------
November 15, 2017
Solvay to sell its Charleston plant in the U.S. and associated
phosphorus business
Solvay has agreed to sell
its U.S. facility in Charleston, South Carolina, and the
phosphorus derivatives-based products made at the plant to
German specialty chemicals company Lanxess. Employees at the
site will also be transferred.
“The divestment will
strengthen Solvay’s focus and resources on our existing
leadership positions in phosphine gas, phosphine derivatives
and phosphorous specialties,” said Michael Radossich,
President of Solvay’s Technology Solutions Global Business
Unit. “With Lanxess, our Charleston employees and our
customers will have a buyer with a strategic, geographic and
technical fit to expand the business and its offerings.”
The products at the site
are used primarily as intermediates in plastic additives,
flame retardants and agricultural applications. The business
represents sales of approximately €65 million.
Completion of the
transaction is subject to customary closing conditions,
including antitrust approvals, and is expected in the first
half of 2018.
2018-08-08 Lanxess
LANXESS plans to sell remaining 50 percent stake in joint venture
ARLANXEO to Saudi Aramco
Joint
venture valued at EUR 3.0 billion
LANXESS
plans to reduce financial debt position
CEO
Matthias Zachert: “Another milestone on our path of transformation.”
Specialty chemicals group LANXESS plans
to sell its remaining 50 percent stake in ARLANXEO
to its joint venture partner Saudi Aramco. The
two companies, that founded ARLANXEO in 2016 as a 50:50 joint venture for
synthetic rubber, signed a respective agreement today.
The transaction is still subject to approval of the relevant antitrust
authorities. At the same time, information or consultation of the competent
employee representative bodies will take place. The parties expect to
complete the envisaged transaction by the end of 2018.
The total joint venture ARLANXEO is valued at EUR 3.0 billion. LANXESS
expects to receive approximately EUR 1.4 billion in
cash after deducting debt and other financial liabilities for its 50
percent share.
LANXESS plans to use the proceeds to strengthen its financial basis and
reduce net financial debt.
Originally, LANXESS and Saudi Aramco agreed on
a lock-up period until 2021 for both partners.
“With the envisaged transaction we would complete another important
milestone of our strategic transformation earlier than originally planned.
This should allow us to even better focus on our position as a leading
player in mid-sized specialty chemicals markets,” said Matthias Zachert,
Chairman of the Board of Management. “At the same time, we increase the
resilience of our business, strengthen our financial basis and gain
additional strategic flexibility for further growth.“
Headquartered in Maastricht/Netherlands, ARLANXEO generated sales of around
EUR 3.2 billion in 2017 and employs about 3,800 people at 20 production
sites in nine countries. The company produces high-performance rubber for
use in, for example, the automotive and tire industries, the construction
industry, and the oil and gas industries.
Back in 2016, the transfer of the business with synthetic rubber into the
joint venture ARLANXEO was the foundation for LANXESS’ strategic
realignment. Since then LANXESS has been focusing on growth in mid-sized
specialty chemicals markets and made various acquisitions in this area –
with the takeover of the U.S. chemical company Chemtura in 2017 as the
biggest one.
2019-08-12
LANXESS to sell its chrome
chemicals business to Brother Enterprises of China
Specialty chemicals company LANXESS is
selling its chrome chemicals business to
Brother Enterprises, a Chinese leather
chemicals producer.
Brother
Enterprises ( 兄弟科技股份有限公司:浙江省海寧市)established
in 1991 and formerly Haining Leather Chemicals Factory, which was one of
the biggest manufacturers of leather chemicals in China.
Both companies today, August 12, 2019,
signed a respective agreement. The transaction is still subject to approval
by the relevant antitrust authorities. LANXESS expects to complete the
planned transaction by the end of 2019.
“We have successfully reorganized our chrome chemicals business in recent
years. However, it no longer fits in with our strategic focus on specialty
chemicals. We are therefore convinced that future growth and the further
development of the business can be better implemented under the leadership
of Brother Enterprises,” said Matthias Zachert, Chairman of the Board of
Management of LANXESS AG.
The chrome chemicals business belongs to the LANXESS
Leather business unit and generates annual sales of around EUR 100
million. The specialty chemicals company produces these chemicals
at two sites in South Africa.
In Newcastle, LANXESS manufactures
sodium dichromate, that is in part processed
into chromic acid there.
At its Merebank site, the company produces chrome
tanning salts from sodium dichromate for the global leather industry.
The plant in Newcastle with around 220
employees will be taken over by Brother Enterprises as part of the
transaction. At the Merebank site LANXESS will continue to manufacture
chrome tanning salts for Brother Enterprises on a contract basis, presumably
until 2024.
November 18, 2019
LANXESS to sell
its stake in chrome ore mine in South Africa to Clover Alloys
Specialty chemicals company LANXESS sells its
74 percent stake in its chrome ore mine in Rustenburg/South Africa to Clover
Alloys (SA) Proprietary Limited, a South African supplier of chrome fine ores.
On November 15, 2019 both companies signed a
corresponding agreement. The parties have agreed to not disclose the purchase
price. The transaction is subject to the approval of the relevant authorities.
LANXESS expects the planned sale to be completed by the end of 2020.
A 26 percent shareholding in the mine will
remain with DIRLEM, the minority shareholder representing employees and some
private investors. LANXESS had already announced the divestment of its chrome
chemicals business to the Chinese company Brother Enterprises in August.
“We have clearly focused our portfolio on
specialty chemicals in recent years and are systematically continuing along this
path. Following the sale of our chrome chemicals business, it is therefore
strategically logical to also divest our stake in the chrome ore mine as a key
source of raw materials for this business,” said Rainier van Roessel, Member of
the Board of Management at LANXESS.
The chrome ore from the mine is used as a raw
material in the ferrochrome and chemical industry and in foundry applications.
The mine employs some 500 staff and more than 1000 contractors.
August 03, 2021
LANXESS completes
acquisition of Emerald Kalama Chemical – New business unit
Flavors & Fragrances
Second-largest
acquisition in company’s history enhances range of
consumer protection products
Flavor chemicals
and preservatives for use in food, household
products, cosmetics and care products
New Flavors &
Fragrances business unit at LANXESS
Today, specialty chemicals
company LANXESS completed the acquisition of
Emerald Kalama Chemical. The
U.S.-based company is a world-leading manufacturer of
specialty chemicals. LANXESS signed a purchase agreement on
February 14, 2021. All required regulatory approvals have
been received. LANXESS financed the purchase price of around
USD 1.04 billion (EUR 870
million) from liquid funds.
In 2020, Emerald Kalama
Chemical generated global sales of around USD 425 million (EUR
375 million) and EBITDA pre-exceptionals of around USD 90
million (EUR 80 million). Seventy-five percent of sales were
attributable to business with specialty products for
the consumer care market, especially
products for flavors and fragrances as well as preservatives
for use in food, household products and cosmetics.
One quarter of sales originated from business with specialty
chemicals for industrial applications. With the closing of
the transaction, LANXESS grows by around 470 employees and
the three production sites in Kalama/Washington (USA),
Rotterdam (Netherlands) and Widnes (Great Britain).
New Flavors &
Fragrances business unit
This second-largest
acquisition in its company history elevates LANXESS to being
one of the leading providers of products for flavors and
fragrances for the consumer sector. Products such as
aldehydes and benzoates are distinguished by their premium
quality, safety and unique flavor profiles.
The main areas of
application for the flavorings and fragrances are personal
care products, cosmetics and exclusive fragrances, as well
as food and drinks. The products in the new LANXESS
portfolio encompass over 30 aroma chemicals, providing a
range of earthy, floral, fruity, spicy and herbal notes.
Benzaldehyde, for
example, gives items such as food, drinks, personal care
products and cosmetics a sweet, almond-like flavor and
fragrance. It is a key component in the synthesis of rose
and jasmine fragrances in the perfume industry.
LANXESS is incorporating
the flavorings and fragrances business into the newly
established Flavors & Fragrances business unit led by Holger
Hueppeler. “We at LANXESS have decades of experience in
technology and production to reliably supply our customers
with synthetic chemicals and deliver consistently
high-quality ingredients that formulators of flavorings and
fragrances can rely on,” says Hueppeler, who began his
career in 1989 at Bayer and has amassed over three decades
of experience in marketing, sales and logistics.
The new business unit
will also comprise benzyl alcohol business. The product is
used as an ultra-pure preservative for injection solutions
and cosmetics and as a synthetic chemical. Other areas of
application include the production of fragrances and
flavorings and agricultural chemicals.
Nature-identical
preservatives for food and household and care products
The acquisition of
Emerald Kalama also enables LANXESS to significantly expand
its portfolio of preservatives. Key products for the food
industry include sodium and potassium benzoate under the
Kalama, Purox and Kalaguard brands. They act as gentle
preservatives in foods, drinks, personal care and home care
products with a pH level of up to 6.5.
Sodium and potassium
benzoate are used primarily as nature-identical
preservatives and safely inhibit the growth of bacteria,
yeast and mold. They are approved as food additives and
preservatives by the U.S. Food and Drug Administration (FDA)
and are used in food and drink applications. The new
products make perfect additions to LANXESS’s existing range
of drink stabilizing agents under the Velcorin and Nagardo
brands.
Benzyl-based
preservatives such as sodium benzoate, benzoic acid and
benzyl alcohol are also used in the household products and
cosmetics sectors. Sodium benzoate, for instance,
effectively inhibits microbial growth up to a pH level of 7.
Kalaguard SB is the only sodium benzoate product with
approval in the U.S. and Europe for household applications
like fabric softeners, cleaning agents and dishwasher
products. Its plus points: It is non-irritating to the skin
and authorized for use in products certified under green
label programs, such as Ecolabel or Nordic Swan.
You can find more
detailed information about the company’s products on the
website at www.lanxess.com.
Euro figures based on exchange rate EUR/USD = 1.14 (average
rate in 2020). The purchase price was converted using
current exchange rate EUR/USD = 1.19.
August 24, 2021
LANXESS
to acquire IFF’s microbial control business
LANXESS to become
one of the world's largest suppliers of microbial
control products
Strengthening the
specialty chemicals portfolio: expansion of the growth
areas disinfection, personal care and material
protection
Acquisition with
approximately USD 450 million* in sales and around USD
100 million* in EBITDA
Attractive
synergies: additional EBITDA contribution of around USD
35 million within four years
Purchase price of
around USD 1.3 billion
Closing of
transaction expected in Q2 2022
Consumer Protection
to become the Group’s strongest segment
LANXESS intends to take over the
microbial control business of the U.S. group International
Flavors & Fragrances Inc. (IFF) which will make the
specialty chemicals company one of the world’s largest
suppliers of microbial control products.
LANXESS is taking another big
step on its growth course: the specialty chemicals company
intends to take over the microbial control business of the U.S.
group International Flavors & Fragrances Inc. (IFF). Both
companies signed a corresponding agreement on August 23, 2021.
IFF Microbial Control is one of the
leading suppliers of antimicrobial active ingredients and
formulations for material protection, preservatives and
disinfectants. The products are used in a wide range of
applications, particularly in personal care and household
products, industrial water treatment as well as paints and
coatings.
The transaction is still subject to approval by the relevant
antitrust authorities. In addition, the business must first be
carved out from the IFF Group. LANXESS therefore expects the
transaction to be completed in the second quarter of 2022.
The IFF microbial control business represents sales of around
USD 450 million* and EBITDA of approximately USD 100 million*.
Within four years after the closing of the transaction, LANXESS
expects synergies to add approximately USD 35 million (EUR 30
million**) in EBITDA. The acquisition is expected to be earnings
per share accretive already in the first fiscal year after
closing.
“In 2021, all signs are pointing to growth. The acquisition of
IFF Microbial Control is already the fourth this year and
LANXESS’ second largest ever. The business fits ideally into our
strategic direction – specialty chemicals with attractive
margins, applications in a wide range of industries and with a
global positioning. It will make LANXESS one of the world’s
largest suppliers of microbial control products. At the same
time, we are enhancing Consumer Protection to become the
strongest segment in the Group and are once again taking LANXESS
a decisive step forward in terms of profitability and
stability,” said Matthias Zachert, Chairman of the Board of
Management of LANXESS AG.
LANXESS will pay around USD 1.3 billion
(EUR 1.1 billion**) for the acquisition. “Taking into account
the synergies we are aiming for, we are achieving an attractive
purchase price of 9.6 times EBITDA,” said LANXESS CFO Michael
Pontzen. The Group will finance the purchase price with debt
capital and has secured respective bridge financing for this
purpose. Pontzen: “We will replace the bridge financing agreed
with our banks in the coming months by placing corporate bonds
in the capital market. In doing so, maintaining our solid
investment grade rating is of great importance to us.”
Perfect addition
to the material protection business
IFF Microbial Control employs
around 270 people and operates two production facilities at its
U.S. sites in St. Charles, Louisiana, and Institute, West
Virginia. The business also maintains a large partner network
with active ingredient manufacturers and formulators. Following
completion of the acquisition, the business is to be integrated
into LANXESS’ Material Protection Products business unit.
“Also thanks to acquisitions in recent years, we are already
well positioned as microbial control solutions provider. With
IFF’s microbial control business, we can now expand our
portfolio of active ingredients, enabling us to offer our
customers additional application-oriented solutions. In
addition, we are strengthening our value chain,” said Michael
Schäfer, head of the Material Protection Products business unit.
“The business also gives us access to new technologies and
enhances our regulatory position through additional
registrations.”
IFF Microbial Control offers a comprehensive portfolio of
innovative and sustainable solutions. The products extend the
life and ensure the functionality of end products, for example
in paints and coatings, personal care products, detergents and
household cleaners. They also preserve water in industrial
applications. Hygiene solutions from IFF Microbial Control are
also used in functional textiles. They ensure that these remain
germ-free for a longer time.
Share buy-back program
will not be continued
With its recent acquisitions,
LANXESS has created attractive growth opportunities and is now
re-prioritizing its capital allocation. Against this background,
the currently suspended share buy-back program will not be
continued. The approximately 1.1 million shares already
purchased will be cancelled.
*Normalized level, i.e. in an average year
**Based on exchange rate of EUR/USD = 1.20.
--------------------------
July 01, 2022
LANXESS completes acquisition of IFF’s
microbial control business
LANXESS
now one of the world’s largest
suppliers of microbial control and
biocidal products
Specialty
chemicals company LANXESS has completed the
acquisition of the microbial control
business unit of the U.S. group
International Flavors & Fragrances Inc. (IFF).
With the
closing of the transaction which was
announced in August 2021, LANXESS has become
one of the world’s largest suppliers of
microbial control products. The specialty
chemicals company is significantly
increasing its portfolio of antimicrobial
active ingredients and formulations for
material protection, preservatives and
disinfectants and is strengthening its
global presence, especially in the United
States. LANXESS paid a preliminary purchase
price of approximately USD 1.3 billion for
the acquisition.
“With this
acquisition we receive another major boost
for our Consumer Protection segment. It will
soon become our strongest segment and is
thus an important engine on the way to make
LANXESS even more stable and profitable,”
said Matthias Zachert, Chairman of the Board
of Management of LANXESS AG. “We are pleased
to have more than 250 highly qualified new
employees and are now focusing all our
efforts on rapidly integrating the newly
acquired business.”
With the
closing of the transaction, LANXESS adds two
production sites to its network in St.
Charles, Louisiana, and Institute, West
Virginia, both in the United States. The new
business will be integrated into the
Material Protection Products business unit
of LANXESS.
Perfect addition to the material protection
business
“By
combining LANXESS’ and the acquired
businesses, we are now building a strong and
broad product and technology platform for
microbial control and biocides, from active
ingredients to powerful formulations. This
enables us to offer our customers additional
application-oriented solutions and to
strengthen our value chain,” said Michael
Schaefer, head of the Material Protection
Products business unit. “The microbial
control business also gives us access to new
technologies and enhances our regulatory
position through additional registrations.”
Strong and well-diversified new portfolio
The
acquisition brings strategic biocidal active
substances, a large registration package and
strong brands which are a perfect fit for
the LANXESS microbial control portfolio.
LANXESS is
also strengthening its position as a global
leader in the field of industrial
preservation and one of the largest
suppliers for isothiazolinone-based
preservatives. LANXESS’ Preventol products
combined with newly acquired Kathon, Bioban
and Rocima brands form one of the broadest
portfolios for paints and coatings,
construction materials, wood preservation,
leather and plastics for both wet- and
dry-state preservation.
LANXESS
further adds silver-based technology to the
portfolio and offers now a complete solution
for the antimicrobial treatment of textiles.
The silver ion-based products known under
the Silvadur brand prevent or reduce odors
in natural or synthetic fibers.
LANXESS also
benefits from the addition of Phenoxyethanol
to its already large personal care and
household preservative portfolio.
Phenoxyethanol is an additional pillar for
the company’s customer preservation strategy
in addition to isothiazolinones and sodium
benzoate allowing to offer customized
solutions to customers and enable them to
adapt their preservation to the growing
regulatory challenges.
November 11, 2021
LANXESS' High
Performance Materials business unit to become legally
independent
LANXESS'
High Performance Materials business
unit is one of the leading suppliers of
high-performance plastics, which are used primarily in the
automotive, electrical and electronics industries.
Specialty chemicals company LANXESS will
transfer its High Performance Materials (HPM) business unit to
an independent legal corporate structure.
HPM is one of the leading
suppliers of high-performance plastics. The materials are used
primarily in the automotive, electrical and electronics
industries. Electromobility in particular is a promising field
of application for the LANXESS plastics, which are used
predominantly for car bodies, battery housings and charging
infrastructure.
“The global market for new
forms of mobility is developing very dynamically and is
strategically rearranging itself – creating many innovative
alliances and partnerships. In order to get the most out of the
growth opportunities in this market and to be able to act
flexibly, we will create a separate legal structure for the
business unit,” said Hubert Fink, member of the Board of
Management of LANXESS AG. LANXESS will begin implementation in
the first half of 2022.
The portfolio of the HPM
business unit includes the engineering plastics
polyamide and polybutylene terephthalate,
as well as thermoplastic fiber composites. The business
unit is characterized by the high backward integration of its
production processes.
The business unit employs
around 1,900 people at 14 sites worldwide. Sales are in the low
single-digit billion euro range.
Lanxess and Advent want to buy DSM Engineering
Plastics
The specialty chemicals group Lanxess is working
together with the financial investor Advent on a
bid for the plastics business of the Dutch competitor DSM.
The Handelsblatt learned this from financial and corporate circles. The division
is therefore worth around three billion euros.
Lanxess is currently outsourcing similar
activities of its own to an independent company called HPM
(High Performance Materials). The DSM division is
to be combined with this later. The new company should form a core for
further acquisitions in the market, said several people familiar with the plans.
DSM Engineering Plastics and Lanxess HPM both have a strong focus on equipping
the automotive industry. They produce high-performance plastics that are used in
lightweight construction for electric cars, plugs or battery housings.
The world market for such plastics is currently still highly fragmented.
Industry experts expect strong consolidation in the coming years, which will
involve the best positions in electromobility equipment. The merger of the
divisions of DSM and Lanxess is aimed at economies of scale, cost reductions and
sufficient financial strength for further acquisitions, according to the
circles.
At the same time, both companies also have products in their portfolio that are
used in combustion cars and that could disappear in the long term as a result of
the switch to electromobility.
The plastics division of DSM, which is currently for sale, is significantly
larger than that of the Cologne-based company, with sales expected for 2021 of
around two billion euros. The adjusted profit (Ebitda) for the current year is
estimated at around 300 million euros. In the case of a deal, the division could
be valued at ten to eleven times Ebitda, i.e. a good three billion euros. The
auction is organized by JP Morgan and Centerview. Lanxess, Advent, DSM and the
banks declined to comment.
For Lanxess it would be the next big deal within a short time. The group has
spent more than two billion euros on acquisitions since January 2021 – this
corresponds to a third of the sales achieved in 2020.
The group is currently integrating the US flavor manufacturer IFF’s
antimicrobial protection products business, which it acquired for $1.3 billion.
The Cologne-based company is thus strengthening its young growth division
“Consumer Protection”, in which businesses with chemicals for disinfection, body
care, material protection and water treatment are bundled. It is part of the new
core business.
This may no longer be the case for the high-performance plastics. Competitors
and investors had already pricked up their ears in November when the
Cologne-based company announced the spin-off of the HPM unit. This is usually
the first step towards a breakup.
The strategy behind it is now becoming apparent: As an independent unit, HPM is
to become an independent larger plastics supplier. The necessary capital for
external support is paid to Advent. Lanxess, on the other hand, could go out of
business in the medium to long term, according to the circles. All options are
open.
Consolidation in the industry is in full swing
But these are still only plans, the sales process has not yet started. DSM has
announced the separation of its Materials division in September 2021. It
consists of two units that are to be sold separately. First, “Protective
Materials” is to be sold, i.e. the business with the extremely strong synthetic
fiber Dyneema.
Potential buyers could value the division, which has an Ebitda of around 120
million euros, at up to 1.7 billion euros, according to people familiar with the
matter. In the next few days they should receive detailed information packages.
The auction for the plastics unit Engineering Plastics starts later. Because in
a few weeks, the US chemical company Dupont will start selling its polyamide
plastics division for ten to twelve billion dollars, which will have an adjusted
profit of around one billion dollars. Two consortiums led by the financial
investors Apollo and Carlyle are interested in this. The DSM business would also
be attractive for the buyer because further economies of scale would result.
With Advent, Lanxess has a financial investor with experience in the chemical
industry at its side who has already made nine investments in Germany alone.
Most recently, Advent took over Evonik’s Plexiglas business for three billion
euros in 2019. However, both will not be the only bidders in the DSM auction.
According to financial circles, the competitor Celanese
from the USA, UBE from Japan and investors such as
SK Capital or the chemical-affiliated investment
company Apollo are interested. The companies
declined to comment or were previously unavailable.
The coffers of financial investors are well stocked for acquisitions. Many are
looking forward to further reorganization in the industry, with companies
spinning off larger businesses and putting them up for sale. In the chemical
industry, this process has been in full swing for many years: Lanxess itself is
the product of a spin-off from the Bayer chemical units in 2005.
CEO Matthias Zachert has completely reorganized the group in recent years. He
prefers high-margin specialty businesses in manageable markets that don’t
involve too much capital investment. Measured against this, a medium-term
separation from the business with high-performance plastics for the automotive
and electrical industry would not be illogical.
In the HPM unit, around 1,900 employees generate sales in the low single-digit
billion euro range. It is rather small compared to competitors such as BASF,
Dupont or suppliers from China. In the area of high-performance plastics, HPM
would be dependent on acquisitions or partnerships in the future. This is how
Zachert justified the decision to become independent, which was planned for the
first half of 2022.
Matthew Zachert
The Lanxess boss prefers high-margin special businesses in manageable markets
and with not too much capital investment.
Lanxess has already exercised its exit in this way: The once dominant business
with rubber for car tires had plunged the group into a deep crisis in 2013.
Financially strong competitors, especially from Asia, had hit the then world
market leader hard. Zachert brought the business into a joint venture with the
Saudi Arabian Aramco, Lanxess later got out completely.
DSM – once grown in the petrochemical industry – is in the final stages of a
rigorous reorganization. The Dutch group focuses entirely
on additives for dietary supplements, animal feed, cosmetics, health products
and medicines.
May 31, 2022
LANXESS and Advent
International establish a leading global joint venture for
high-performance engineering polymers
LANXESS and Advent
to acquire Engineering Materials business from DSM for a
purchase price of around EUR 3.7 billion
LANXESS to transfer
High Performance Materials business into joint venture
LANXESS to receive a
payment of at least EUR 1.1 billion and a stake of up to
40 percent in the joint venture
LANXESS will use
proceeds to reduce debt and plans to buy back shares
New joint venture
with pioneering product portfolio and integrated value
chain
High Performance Materials engineering
plastics that are sold under the brand names
Durethan® polyamides
Pocan®PBT Tepex
fiber-reinforced,
plastic-based, plate-like composite material
Specialty chemicals company
LANXESS and Advent International, one of the largest and most
experienced global private equity investors with a well
established track record in chemicals investings, are
establishing a joint venture for
high-performance engineering polymers. The two companies
today signed an agreement to acquire the
DSM Engineering Materials business (DEM) from Dutch group
Royal DSM, which will become part of the new joint venture. The
purchase price is around EUR 3.7 billion and will be financed by
the joint venture via equity from Advent and external debt. The
business represents sales of around EUR 1.5 billion with an
EBITDA margin of approximately 20 percent. DEM is one of the
leading global suppliers in high-performance specialty materials
that address key market needs in electronics, electrical and
consumer goods.
In addition,
LANXESS will contribute its High
Performance Materials (HPM) business unit to the joint venture.
HPM is one of the leading suppliers of high-performance
polymers, which are used primarily in the automotive industry.
The business represents annual sales of around EUR 1.5 billion
with EBITDA pre exceptionals of around EUR 210 million.
Advent
will hold at least 60 percent in the joint venture.
LANXESS will receive an initial payment of at least EUR 1.1
billion and a stake of up to 40 percent in the future joint
venture. Following the transfer to the joint venture, the HPM
business will no longer be fully consolidated at LANXESS, but
will be included in the consolidated financial statements at
equity.
This move further sharpens LANXESS’ business portfolio, which
will consist of three specialty chemicals
segments once the transaction is completed. LANXESS will
use the proceeds of the transaction to reduce debt and to
strengthen its balance sheet. In addition, the Group plans a
share buy-back program with a volume of up to EUR 300 million.
LANXESS will have the possibility to
divest its stake in the joint venture to Advent at the same
valuation earliest after three years. EBITDA could then
be significantly higher than today as Advent and LANXESS
anticipate substantial synergies resulting from the combination
of the two businesses.
The transaction is still subject to approval by the authorities.
Closing is expected in the first half of 2023.
LANXESS CEO Matthias Zachert: “LANXESS will once again become
significantly less dependent on economic fluctuations. In
addition, we as LANXESS will strengthen our balance sheet with
the proceeds from the transaction and gain new scope for the
further development of our Group. With the new joint venture, we
are forging a strong global player in the field of
high-performance polymers. The portfolios, value chains and
global positioning of the two businesses complement each other
perfectly. With its innovative products, the joint venture will
be able to play a key role in shaping future developments - for
example in the field of electromobility. In Advent, we have a
strong and reliable partner with profound experience in the
chemical industry and our customer industries.”
Ronald Ayles, Managing Partner at Advent International: “Joining
forces with LANXESS in this industry transforming transaction is
a highlight for Advent as we have built a trusted, long standing
relationship and share the highest mutual respect. Together we
plan to bring the experience, deep sector know-how, and
financial resources to make the joint venture a global success
story for everyone involved. The combination of LANXESS’ High
Performance Materials (HPM) and DSM Engineering Materials (DEM)
creates a strong platform and brings together extensive
expertise, resulting in the best opportunities for employees and
more value for customers.”
Global set-up and high
backward integration
DSM’s Engineering Materials
business comprises polyamides (PA6, PA66) as well as various
specialty materials (PA46, PA410 and specialty polyesters as
well as PPS). Around 2,100 employees work for the division at 8
production and 7 research sites in all relevant markets
worldwide. In addition to Europe and the US, the business has a
particularly strong presence in Asia.
LANXESS’ High Performance Materials (HPM) business unit is one
of the leading producers of PA6 and PBT engineering polymers and
thermoplastic fiber composites. A total of 1,900 employees at 10
production and 7 research sites worldwide work for HPM. The
global production network is characterized by a high degree of
backward integration. The backbone is the Antwerp/Belgium site.
There, HPM produces not only PA6 polymers but also relevant
precursors such as caprolactam and glass fibers.
Sustainable product
portfolio
Both DEM and HPM are pioneers in sustainability, offering bio-
and recycled-based alternatives across their product portfolios.
For example, LANXESS recently launched a new high-performance
polymer that is made from 92 percent sustainable raw materials.
In producing the polymer, LANXESS uses “green” cyclohexane from
sustainable sources such as rapeseed oil or other biomass as a
raw material. It is reinforced with 60 percent by weight glass
fibers recycled from industrial glass waste.
Future-oriented
applications
The automotive industry is a
focus customer sector for the new joint venture. There, the
polymers are used, among other things, for lightweight elements
in structural parts but also in the interior and often replace
metal parts. In this way, weight can be saved and CO2 emissions
reduced. An important growth area is electromobility. Here,
polymers are used, for example, in the construction of battery
and charging systems, electronic control systems and power
electronics.
In addition, the materials are used in the electrical and
electronics industry, for example in components for smartphones,
IT and household appliances.
