Lanxess cuts 140 jobs

Lanxess cuts 140 jobs

1:16 PM, 20th March 2015
Lanxess cuts 140 jobs

COLOGNE, GERMANY: German chemicals group Lanxess unveiled more cutbacks, shedding about 140 jobs in rubber production and acknowledging its quest for a strategic partner would likely take until the second half of the year. The company, the world’s No1 maker of synthetic rubber, said as early as May last year it would seek a strategic partner for its hard-pressed rubber division.

Its shares traded 0.8 per cent lower, having dipped as much as 2.4 per cent shortly after the open. “Lanxess is currently in talks with potential partners and will possibly report on these in the second half of 2015,” said the company in a statement.

The company will stop production of EPDM rubber, used in tubes, sealants and transmission belts, at its Marl site in Germany, affecting 120 jobs. A further 20 posts in the production of high-performance tyre rubbers will go in the United States.

New output capacity in EPDM is coming to market driven by players such as Mitsui Chemicals and Sinopec. Lanxess has itself contributed to the supply overhang, as it is bringing on stream the world’s largest EPDM plant at its Changzhou site in China, an investment initiated by Zachert’s predecessor.

Lanxess unveiled plans in November to cut about 1,000 jobs, or 6 per cent of its global workforce, in administration, services, marketing and sales, to counter overcapacity. Lanxess is also cutting its investment budget to €450 million ($479 million) this year.

 

© The Economic Times News

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