COLOGNE, Germany—Lanxess A.G. has launched a group-wide restructuring program at its board meeting on July 24.
Talks about planned measures resulting from the program are being held with the supervisory board and employee representatives, the firm said.
Lanxess said administrative structures and decision-making processes are to be streamlined. The firm also will aim to improve customer and market orientation within the business units.
Lanxess said during the publication of its 2014 first quarter results that it is developing measures to reduce costs and increase competitiveness. The firm said more information about the program is forthcoming during the second half of the year.
The company reported a 2.5 decrease in sales for the first quarter, at about $2.78 billion, but its net income held steady compared to 2013 at about $34.8 million.
CEO Matthias Zachert—who became the second chairman of the board of management in the firm's history on April 1—said at the time of the first quarter results that Lanxess “must become significantly more competitive and profitable again. The focus will therefore be on the business portfolio, our business units, the efficiency of our administration and our production sites.”
Lanxess is a special chemicals producer that reported sales of about $11.5 billion in 2013 and operates 52 production sites worldwide. It employs about 17,000 in 31 countries.