German chemical company Lanxess AG has reported an 11% increase in sales in the second quarter of 2005, to reach  €1.86 billion compared with €1.67 billion in 2004..

Restructuring measures already initiated and the consistent pursuit of our price-before-volume strategy have had a positive effect on earnings,” explained Lanxess management board chairman Axel C. Heitmann. However, we continue to suffer from structural disadvantages. The realignment of the Lanxess Group will therefore remain our top priority so that we can catch up with the competition in terms of earnings.”

Lanxess also announced a second restructuring package designed to achieve annual savings of €60 million. Two-thirds of these savings is to be achieved by 2007, and the full annual amount starting in 2008. The package comprises the closure of smaller sites and the consolidation of unprofitable facilities in the Inorganic Pigments (IPG), Leather (LEA), RheinChemie (RCH), Technical Rubber Products (TRP) and Textile Processing Chemicals (TPC) business units, and the related service functions.

The main focus of these measures is on the United States and Europe. In total 450 positions will be eliminated.