LANXESS to cut, halt production at 23 plants in Germany

LONDON (ICIS news)–LANXESS will cut production at over half of its German chemical plants during the Christmas period and into January 2009, directly affecting 1,400 employees, the specialty chemicals producer said on Wednesday.

Production would be cut back or halted at 23 of its 45 plants at production sites in Leverkusen, Dormagen, Krefeld-Uerdingen and Brunsbuettel.

“This agreement is a first important step in a flexible, costs compatible and targeted response to the current decline in demand and the drop in orders,” said LANXESS labour relations director and board member Rainier van Roessel.

LANXESS said employees at plants that have been shut down would be asked to reduce positive balances on their time accounts or use part of their annual vacation.

Where these options were exhausted, employees could debit hours from their individual time accounts, working extra hours at a later time, LANXESS said.

“The new agreements ensure that uniform arrangements apply at all sites and business units of LANXESS if facilities are temporarily shut down,” said Werner Czaplik, the chairman of the company’s central works council.

Demand for LANXESS products has been hit by weak downstream demand from the automotive, construction and general chemicals markets as European economies slide into recession.

LANXESS did not specify which products would be affected by the cutbacks and shutdowns.

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