Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • Motion Industries rebrands as 'Motion'
      USW opposes Taiwan tire makers' dumping counterproposal
      Goodyear-branded transmission belts set to return
      Hot topics at virtual CES: AVs, air taxis and drones
    • USW opposes Taiwan tire makers' dumping counterproposal
      Greenergy, Haldor Topsoe tech turns tires to fuel
      India decides against extending carbon black duties
      GRI expanding ag tire capacity at 3-year-old Sri Lanka plant
    • Motion Industries rebrands as 'Motion'
      Proto Labs to buy e-commerce company 3D Hubs for $280 million
      NewAge Industries celebrates 15 years of employee ownership
      India decides against extending carbon black duties
    • Tero Peltomaki named Cimcorp CEO
      Nynas expects to be stronger after reorganization
      Synthomer CEO MacLean to step down by early 2022
      Safic-Alcan and Arkema working together on distribution deal
    • Proto Labs to buy e-commerce company 3D Hubs for $280 million
      Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
    • WCCO task force navigates pandemic, expands communications
      ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
    • Tero Peltomaki named Cimcorp CEO
      Synthomer CEO MacLean to step down by early 2022
      ARP Materials adds technical sales manager
      Jack Murphy joins Akron Dispersions
    • USW opposes Taiwan tire makers' dumping counterproposal
      India decides against extending carbon black duties
      Hot topics at virtual CES: AVs, air taxis and drones
      Paycheck Protection Program funding reopens Jan. 15
    • Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
      Column: Still far way from normal
    • Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
      A comparative study looking at effects of curing kinetics and batch variation on SBR injection molding and numerical analytics
    • Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Nova thinks outside the box with sealing tech
      New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Motion Industries rebrands as 'Motion'
      USW opposes Taiwan tire makers' dumping counterproposal
      Goodyear-branded transmission belts set to return
      Hot topics at virtual CES: AVs, air taxis and drones
    • Proto Labs to buy e-commerce company 3D Hubs for $280 million
      Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
    • Bridgestone bets on guayule as alternative natural rubber source
      Synthomer CEO MacLean to step down by early 2022
      Jack Murphy joins Akron Dispersions
      Synthomer optimistic, raises earnings forecast
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Select™: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2020 International Silicone Conference Virtual Edition
      2020 ITEC Virtual Edition
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
March 15, 2017 02:00 AM

Lanxess' transformation leads to solid 2016

Chris Sweeney
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    COLOGNE, Germany—Lanxess A.G.'s restructuring efforts are starting to pay off.

    Net income for 2016 increased 16.4 percent to $204 million, despite a 2.6 percent decrease in sales to $8.18 billion, and EBITDA increased by 12.4 percent to about $1.06 billion the firm said during its financial presentation for 2016.

    "Lanxess is back on track for success," CEO Matthias Zachert said in a March 15 news release. "We have achieved key milestones in our reorganization to make Lanxess a more stable and profitable enterprise and we have progressed a good way on our course for growth."

    It's been a busy year for Lanxess as it emerges from multi-stage restructuring effort, which Zachert established when he took over as CEO in 2014. The firm consolidated to 10 business units, from 14, and realigned its EPDM and neodymium-based performance butadiene rubber portfolio into strategically placed global sites. The combined moves reduced employment by more than 1,000.

    The final piece was establishing a 50-50 synthetic rubber joint venture with Saudi Arabian Oil Co., who paid $1.34 billion for its stake of Lanxess' synthetic rubber-related business units—Tire & Specialty Rubbers and High Performance Elastomers. Arlanxeo went operational April 1 and reported sales of $2.88 billion, a 5.2 percent decrease compared to 2015. That was due to what Lanxess described as a "persistently difficult competitive environment." Reduced selling prices outweighed cost relief gained from lower raw material prices.

    The firm used proceeds from the sale to help reduce its debt. It reported net financial liabilities at $285.7 million for the end of 2016, decreasing by $984.3 million compared to the end of 2015.

    Lanxess also is in the process of acquiring Chemtura Corp., a U.S.-based flame retardants and lubricant additives producer, for about $2.5 billion. Chemtura's shareholders approved the deal in February and Financial authorities in South Korea approved the deal at the beginning of March. Authorities in the U.S. and Brazil approved the acquisition earlier. Lanxess said the acquisition is on track to close by mid-2017.

    "We again significantly strengthened our balance sheet in 2016 and are continuing along this path of financial stability," Chief Financial Officer Michael Pontzen said in a statement. "We secured the financing for the planned acquisition of Chemtura quickly and at attractive conditions while at the same time maintaining our investment-grade rating."

    Segment-wise, Lanxess' Advanced Intermediates and High Performance Materials segments each saw decreased sales, by 4.6 percent ($1.85 billion) and 2.7 percent ($1.13 billion), respectively.

    Its Performance Chemicals segment improved by 2.7 percent to $2.27 billion. Lanxess attributed the growth to volume growth and better capacity utilization. This segment also houses the firm's Rhein Chemie Additives business, which is set to triple in sales once combined with the incoming Chemtura business.

    Lanxess employs about 16,700 in 25 countries with 54 production sites.

    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION