Cologne, Germany - Lanxess AG has initiated a ‘carve-out’ process to transfer its rubber business to a legally independent entity within the Lanxess Group, the company announced on 6 Aug.
According to Lanxess, the new entity will include two business units: Tire & Specialty Rubbers (TSR) and High Performance Elastomers (HPE). Together they encompass 20 production facilities and some 3,700 employees as well as supporting administrative functions.
“In this way, we are creating the conditions that will enable us to bring the rubber business into an alliance,” said Matthias Zachert, chairman of Lanxess.
The formation of the new entity is the third phase of Lanxess realignment programme which started last November.This final phase is focused on “improving the competitiveness of the business portfolio, especially through potential alliances in the rubber business.”
“In this connection, we are currently engaged in very constructive discussions and assume that we will achieve concrete results in the course of the second half of the year,” said Zachert.
Sources close to Lanxess have previously told ERJ that an announcement on the alliance is likely early November.
Saudi chemicals company Sabic as well as Russia’s Sibur have been cited by analysts as leading potential partners.