LEVERKUSEN, Germany (Feb. 1, 2008) — Lanxess A.G. plans to shut down its NBR plant in Sarnia and streamline the service areas for butyl rubber production there, resulting in the loss of 270 jobs.
About one-third of the job cuts will be from the closure of the NBR facility, which will occur in this year's second quarter, according to Lanxess. The NBR plant in Sarnia is more than 60 years old.
NBR production will be taken over by the Lanxess factory in La Wantzenau, France. "Our modernized plant in La Wantzenau near Strasbourg is due to its scale in a position to take over the entire NBR production from Sarnia at much more competitive conditions," said Werner Breuers, a member of the Lanxess management board.
To improve Sarnia's competitive position, the firm did start work in 2006 to expand the site's butyl rubber production. The second expansion stage is under way, with plans to boost the company's total worldwide butyl rubber capacity to 280,000 metric tons a year by 2010.
The company expects $29.7 million in one-time costs from the restructuring plan, with savings to be reflected in earnings starting in 2009.