LANXESS targets €100m savings from 2015, 1,000 jobs to be lost

18 September 2013 13:09  [Source: ICIS news]

COLOGNE (ICIS)--LANXESS is to cut around 1,000 jobs worldwide as part of a drive to achieve €100m efficiency savings from 2015 onwards, the Germany-headquartered specialty chemicals company said on Wednesday.

LANXESS added that it is "pursuing strategic options" for certain business divisions deemed to be non-core. CEO Axel Heitmann also predicted that the company's earnings before interest, taxes, depreciation and amortisation for 2013 is likely to be around €700-800m ($933-1067), down from €1.23bn in 2012.

"Due to the current situation we must now take action," Heitmann said. "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 markets but it is too early to say when and how quick a recovery will take hold," he added.

The company said that it is to maintain its current structure of 14 established business units, but that options are being considered for subsidiaries with combined sales of €500m.

Deemed to be non-core, the businesses include the Perlon-Monofil unit of the High Performance Materials business, the accelerators and antioxidants business of the Rubber Chemicals division, and the nitrile butadiene rubber line of the High Performance Elastomers business.

 "Each of these businesses is well positioned on the market, but can develop better over time with a different partner," he added.

The company said that "all options" for the sites in question will be considered in line with legal frameworks and local employee participation.

By: Tom Brown
+44 208 652 3214

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