Rubber Production Lanxess' Realignment will See Closure of Rubber production at Marl, Germany

The realigment strategy of Lanxess takes its toll on the company's production site: The firm has decided to end the production of EPDM rubber in Marl.

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LANXESS AG

Cologne/Germany – Up till now, position cuts were mainly in administration - now an industrial production plant is affected: 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, speakers stated.

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.

Concentrating Rubber Production at Fewer Sites

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 € 20 million.

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