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January 15, 2009 01:00 AM

Lanxess to cut butyl output

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    LEVERKUSEN, Germany (Jan. 15, 2009)—Lanxess A.G., which last month put off capacity expansions and the relocation of its headquarters, said it will cut output at butyl rubber plants in Sarnia, Ontario, and Zwijndrecht, Belgium.

    Capacity utilization either will be reduced or a temporary plant shutdown may occur, the synthetic rubber producer said.

    Lanxess said its actions will affect 360 workers. In Sarnia, overtime and the use of annual vacation for employees will be implemented, while in Belgium the staff will be put on a shorter work schedule.

    The measures are aimed at reducing costs and controlling inventory levels, according to Ron Commander, head of the firm's butyl rubber business unit.

    Last month the company postponed the groundbreaking of a butyl rubber facility in Singapore from January until next fall; expansions at two other plants; and moving its headquarters to Cologne, Germany, from Leverkusen. At the time Lanxess Chairman Axel Heitmann said the global decline in demand for chemical products was behind the moves, which also will help the company financial flexibility.

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