COLOGNE—Lanxess A.G. will raise prices worldwide for its rubber chemicals, effective in June.
The price increases will vary depending on product and region. The firm said adjustments will increase up to $1.10 per kilogram.
“After the minor move we made in April, this is now a significant step towards restoring our margins to acceptable levels,” says Luis López-Remón, head of Lanxess' rubber chemicals business unit. “The recent escalation of Chinese environmental enforcement activities, in particular for waste water, is reaffirming our determination to position ourselves as a viable, long-term supplier of high quality rubber chemicals.”
The firm recently announced its first quarter results, which included a 2.5 percent decrease in sales to $2.78 billion and net income that held steady at about $34.8 million. On the heels of the results, CEO Matthias Zachert said Lanxess will pursue realignment options, which could include streamlining its decision-making process and optimizing administrative structures.
Lanxess' rubber chemicals are primarily used in the manufacture of rubber products such as tires, hoses and sealing profiles. They're also used in the production of drive elements like timing or transmission belts.
The rubber chemicals business unit is part of the firm's performance chemicals segment, which recorded sales of about $2.92 billion in fiscal 2013.