Synthetic Rubber Lanxess and Saudi Aramco Rubber Joint Venture to be Launched Under the Name Arlanxeo
The new player in the global market for synthetic rubber is called Arlanxeo. As specialty chemicals company Lanxess and Saudi Aramco told, the joint venture for synthetic rubber is going to start in April.
Cologne – 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 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.
Agreement in September Last Year
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.
The company 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 the neue company. We are looking forward to the launch of this promising new partnership.”