COLOGNE, Germany—Arlanxeo, the 50-50 synthetic rubber joint venture between Lanxess and Saudi Aramco, has reported a 5.2 percent decrease in sales to $2.91 billion in the full fiscal year 2016.
In its financial results for the year 2016, German-based parent company Lanxess said the drop in sales was due to "a persistently difficult competitive environment."
Despite "positive development of volumes," Arlanxeo earnings (EBITDA pre exceptionals) were 4.6 percent below the year before at $400.7 million. Reduced selling prices, Lanxess said, outweighed cost relief gained from lower raw material prices.
Arlanxeo, which comprises Lanxess' synthetic rubber-related business units—tire and specialty rubbers and high performance elastomers—went operational April 1.
Elsewhere, sales in Lanxess' Performance Chemicals segment improved by 2.7 percent to $2.3 billion. Lanxess attributed this 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.
Additionally, Lanxess announced March 16 that it will be investing several million dollars to expand its production capacities for rubber chemicals at its Kallo/Antwerp site in Belgium.