Lanxess to counter declines in synthetic rubber
Lanxess is targeting EUR 100 million in annual savings from 2015 through efficiency improvements and restructuring to counter declines in its synthetic rubber division.
The chemical company has launched an “efficiency programme” to counter what it describes as a “challenging business environment” and the arm will see around 1,000 job cuts globally.
“It is foremost the synthetic rubber activities that are experiencing a temporary weakness in demand, increased competition in the market and volatile raw materials prices,” Lanxess said in a statement.
Chairman Axel Heitmann said: “We have a strong track record of managing our business in challenging economic environments. We will undertake all necessary steps to return to sustainable and profitable growth as soon as possible. We are seeing the first signs of stability in the market but it is too early to say when and how quick a recovery will take hold.”
Heitmann confirmed the company expects earnings of EUR 700-800 million for 2013.
The group will maintain its current
structure of 14 business units under its three established segments.
