Highlights Q3 2014
LANXESS pressing ahead with realignment
In July the Board of Management initiated the “Let’s LANXESS again” program, which is aimed at the global realignment of the company and is comprised of the following three phases:
- Competitiveness of the business and administrative structure
- Operational competitiveness
- Competitiveness of the business portfolio
In the first phase, LANXESS will reduce the number of business units from 14 to 10 with effect from January 1, 2015. This measure is intended to improve customer and market orientation and exploit synergies. In addition, the company is streamlining its administration worldwide through cross-functional workforce reductions and the consolidation of group functions. The responsible employee representatives are involved in the process.
The second phase will comprise a production optimization initiative to examine all production facilities including the supply chain with respect to market requirements and synergies. At the same time, an initiative to optimize sales and the value chain will evaluate the effectiveness and efficiency of the company’s international sales and marketing structures.
LANXESS has already initiated the first steps of the third phase as well, which focuses on examining portfolio options as well as improving access to raw materials and customer markets – through alliances or sales collaborations, for example.
Change on the Board of Management
Werner Breuers, who previously held responsibility on the Board of Management of LANXESS AG for the Performance Polymers and Advanced Intermediates segments, will leave the company at his own request after his service contract ends on May 31, 2015, in order to pursue new challenges. Mr. Breuers left the Board of Management effective midnight on August 5, 2014. He will however remain in an advisory role to LANXESS for a transitional period. The vacated position on the Board of Management is to be filled within one year. Until that time, CEO Matthias Zachert will temporarily assume responsibility for the aforementioned two segments.
LANXESS once again listed in Dow Jones sustainability indices
For the fourth consecutive year, LANXESS has been included in the renowned DJSI World sustainability index. In connection with this regular evaluation, the company’s inclusion in the DJSI Europe was also confirmed. The DJSI members are determined each year according to the best-in-class principle on the basis of economic, ecological and social criteria. Only the best companies from each of the 59 industries are selected as Sustainability Leaders. LANXESS is one of 11 chemical companies worldwide to be listed.
Targeted expansion of production capacities
LANXESS commissioned its new plant for polyamide plastics in Antwerp, Belgium, at the beginning of the third quarter as planned. The High Performance Materials business unit’s facility is designed for an annual capacity of around 90,000 tons. Following the start-up phase, capacity utilization at the plant will be gradually increased. LANXESS subsidiary Bond-Laminates GmbH has completed capacity expansion at its headquarters in Brilon, Germany, for the Tepex line of high-performance composite materials. In Leverkusen, LANXESS inaugurated an additional production line for the Liquid Purification Technologies business unit’s weak acid cation exchange resins, thus increasing the capacity for this product by 30%.
In view of steadily increasing demand, especially from the automotive industry, the High Performance Materials business unit is adding a second production line to its compounding facility for high-tech plastics in Gastonia, United States. With this move, LANXESS will double capacity there from currently 20,000 to 40,000 tons per year. Production is scheduled to start at the beginning of 2016. In addition, LANXESS is strengthening its production network in China to meet the high level of demand for the iron oxide pigments of its Inorganic Pigments business unit by adding a mixing and milling facility to the pigment plant currently under construction in Ningbo. The plant complex is scheduled for completion in the fourth quarter of 2015 and the start-up of production for the first quarter of 2016.