COLOGNE, Germany—Lanxess A.G. is restructuring to reduce costs and jobs by 2015, and its rubber business is a primary focus of its efforts.
Lanxess will pursue "strategic options" for some of its non-core businesses. The company said those include its rubber chemicals' accelerators and antioxidants lines, nitrile-butadiene rubber business, and Perlon-Monofil polyamid and polyester monofilament products.
The company also is aiming to save $135.3 million by 2015 and beyond by eliminating 1,000 jobs worldwide.
"The environment has been challenging for Lanxess," a company spokeswoman said in an email. "Some of our operations are encountering significant challenges. Especially the synthetic rubber activities are experiencing a temporary weakness in demand, increased competition in the market and volatile raw materials prices."
Lanxess said it will phase out the positions through early retirement packages and severance pay. In addition, the variable compensation for the current business year will be reduced for those who are eligible, including the board of management.
Its non-core activities combine for approximately $674.1 million in sales and consist of approximately 1,000 employees, according to the company. The affected sites include Bushy Park, S.C.; Brunsbuettel and Dormagen, Germany; Kallo, Belgium; Jhagadia, India; La Wantzenau, France; and Nantong, China.
Lanxess said the restructuring efforts are all part of reaching the company's mid-term earnings goal of $2.42 billion EBITDA pre-exceptionals in 2018.
The company will maintain its current structure of 14 business units under its three established segments, according to the spokeswoman.
Chairman Axel Heitmann said the firm must take action because of the current economic situation.