Germany: Leather Chemicals Lanxess Sells Chrome Chemicals Business
Lanxess is selling its chrome chemicals business to Brother Enterprises, a Chinese leather chemicals producer. Both companies signed a respective agreement on August 12, 2019.
Cologne/Germany — Lanxess has reorganized its chrome chemicals business in recent years. However, it no longer fits in with the company's strategic focus on specialty chemicals, says Matthias Zachert, Chairman of the Board of Management. That is why the company is now selling this business to Brother Enterprises. The transaction is still subject to approval by the relevant antitrust authorities. Lanxess expects to complete the planned transaction by the end of 2019.
The chrome chemicals business belongs to the group's Leather business unit and generates annual sales of around $ 111.7 million. The specialty chemicals company produces these chemicals at two sites in South Africa. In Newcastle, the company 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.