With weak demand for synthetic rubbers from the automotive industry, Lanxess has to cut corners: The Germany based speciality chemicals company plans to save up to € 100 million per year.
Cologne/Germany – “Due to the current situation we must now take action,” Lanxess’ Chairman of the Board of Management, Axel C. Heitmann explained. The company's "Advance" program now plans to cut up to 1000 jobs worldwide as well as increase the company's productivity. “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 added.
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 the current market situation.