Lanxess completes Petroflex acquisition

ERJ staff report (DS)

Leverkusen, Germany -- Lanxess AG said it successfully completed on 1 April 2008, the acquisition of an approximate 70 percent holding in Petroflex SA, Latin America's biggest rubber producer. The company is paying some EUR 200 million for the package of shares. Lanxess expects to issue a public takeover offer for the remaining shares in the near future.

Lanxess immediately appointed Joerg Schneider as CEO of Petroflex. Schneider has worked for Lanxess in Brazil for several years, occupying several positions, most recently holding a senior post in the Rubber Chemicals business unit.

In 2006 Petroflex had some 1300 employees and sales equivalent to about EUR 500 million. The group's 2007 output at its three sites in Brazil - Cabo in Pernambuco State, Duque de Caxias in Rio de Janeiro State and Triunfo in the State of Rio Grande do Sul - will exceed 400 000 tons. Its elastomer products range from solution rubber to emulsion rubber and comprise 70 brands. The products are used especially in the manufacture of tyres as well as for tubing and plastics. One third of its output is exported to more than 70 countries.

The IISRP lists Petroflex as operating three factories in Brazil. The Cabo unit is listed as having capacity for 90 kt/year of BR; 25 kt/year for solid S-SBR and 10 kt/year of styrenic block copolymers. The Duque de Caxias unit is listed as having annual capacity for 196 kt of solid e-SBR, while the Triunfo unit has annual capacity for 60 kt of solid E-SBR and 20 kt of nitrile rubber (NBR). This adds to 401 kt/year.

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Press release from Lanxess