Cologne, Germany – Arlanxeo, the 50:50 synthetic rubber joint venture between Lanxess and Saudi Aramco, has reported a 5.2% decrease in sales to €2.71 billion in the full fiscal year 2016.
In its financial results for the year 2016, German-based parent company Lanxess said the drop in sales was due to "a persistently difficult competitive environment."
According to Lanxess, despite “positive development of volumes”, Arlanxeo earnings (EBITDA pre exceptionals) were 4.6% below the year before at €373 million.
Reduced selling prices, said Lanxess, outweighed cost relief gained from lower raw material prices.
Arlanxeo, which comprises Lanxess’ synthetic rubber-related business units – tire & speciality rubbers and high performance elastomers - went operational 1 April 2016.
Elsewhere, sales in Lanxess’ Performance Chemicals segment improved by 2.7% to €2.14 billion.
Lanxess attributed this to volume growth and better capacity utilisation. This segment also houses the firm's Rhein Chemie Additives business, which is set to triple in sales once combined with the incoming Chemtura business.
Additionally, Lanxess announced 16 March that it will be investing a "mid-single digit euro million" figure to expand its production capacities for rubber chemicals at its Kallo/Antwerp site in Belgium.
