Industry News

Lanxess Invests in Butyl Rubber Plant in Singapore

Published on 2010-09-17. Author : SpecialChem

Leverkusen/Dusseldorf -- Lanxess has announced its goal to increase its earnings indicator by roughly 80 percent in the coming five years. It plans to achieve its mid-term earnings target through a dual-track growth strategy of organic and external growth. Organic growth will play the more dominant role.

Lanxess' businesses benefit from their focus on premium products serving the four megatrends of mobility, agriculture, urbanization and water. The company's BRIC strategy and the expected growth of its leading customer industries will help each of its businesses to generate an EBITDA compound annual growth rate of at least five percent through 2015.

It is one of the the world's leading synthetic rubber company and focusing on on the megatrend of mobility. And its largest customer industry is tire industry, where the expected annual growth is 5% by the end of 2015.

Lanxess is constructing a new EUR 400 million butyl rubber plant in Singapore in order to meet the growing demand. The plant will majorly serve the booming tire market in Asia. Lanxess is also expanding its world-scale butyl rubber plant in Belgium.

The Company is expanding its production capacities in Germany, USA and Brazil for neodymium polybutadiene rubber (Nd-PBR), which is essential in the production of high-performance tires. The company is also considering a building a new production plant for Nd-PBR in Asia, with a capacity of 100,000 to 150,000 metric tons per annum, for which a final decision is yet to be made.

The Company is addressing the megatrend of mobility and expanding its production for Plastic Products. The company is expanding production in Wuxi, China and also build a new plant in Jhagadia, India.

The other project is to serve the megatrends of agriculture, urbanization and water.

The Company will continue to explore external growth opportunities to strengthen the existing business portfolio. Lanxess CFO Matthias Zachert stressed that the current focus is on small to medium-sized acquisitions similar to the transaction size of past acquisitions. Zachert added that both organic growth projects and acquisitions must adhere to strict financial criteria.

About Lanxess

Lanxess is a leading specialty chemicals company with sales of EUR 5.06 billion in 2009 and currently around 14,300 employees in 23 countries. The company is represented at 42 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.

Source: Lanxess

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