Lanxess to divest PU business as 'last remaining polymer' operation
Cologne-based group also launching restructuring measures to reduce costs by €150m
Cologne, Germany – Lanxess AG is divesting its polyurethanes business as the “last remaining” polymer business no longer fits with the group’s strategic orientation.
Presenting its third quarter results 8 Nov, Lanxess said it had systematically realigned its portfolio in recent years and the move was in tune with that strategy.
Lanxess said it had initiated the sale of the urethane operations, which covers six production sites globally and employs around 400 people.
The announcement came as Lanxesses reported a weak third quarter, amid low demand “from nearly all industries and customers’ ongoing, albeit diminishing inventory reduction.”
The German group saw earnings (EBITDA pre exceptionals) fall by more than 50% to €240 million on 27% higher sales of €1.6 billion.
To address this, Lanxess said it was launching restructuring measures “to permanently reduce costs by €150 million.”