COLOGNE, Germany—Lanxess A.G. is making two moves related to businesses it acquired from Chemtura Corp.
The firm said on Oct. 2 that its Urethane Systems business unit of specialty chemicals increased its prices for urethane products. The price increases are driven by a continued rise of raw materials costs.
In an Oct. 3 statement, Lanxess disclosed its plans to cease production at its Ankerweg, Netherlands, facility where it produces base oils for industrial lubricants effective November 2018. About 100 employees will be affected by the move.
Anno Borokwsky, head of the Additives business unit at Lanxess, said the firm's priority is to work with employee representatives to find reasonable solutions for the employees affected by the shut down. The firm has already engaged in constructive negotiations with union representatives.
"We carefully analyzed the site and came to the conclusion that we cannot run production there on a competitive basis," Borkowsky said in a statement. "Lanxess can produce the volume of base oils it needs to cover its own demand for the production of high-performance lubricants as well as market demand at its Elmira site in Canada. Additionally, the contract manufacturing agreement for agricultural active ingredients, that represents a substantial part of the activities at the Ankerweg site, will end by November 2018."
Lanxess also acquired its Urethane Systems business unit from Chemtura. Prices will increase across the board globally for its urethane products. In the Americas, its Adiprene and Vibrathane brands as well as other urethane prepolymers will see increases of up to 90 cents per kilogram, depending on the product grade. Vibracure and other urethane curatives will rise by up to 50 cents per kilogram, depending on product grade, and Fomrez polyester polyols will rise by 33 cents per kilogram.
In Europe, the Middle East and Africa, Adiprene, Vibrathane and other urethane prepolymers will rise by up to 94 cents per kilogram, depending on product grade. Vibracure and other urethane curatives will rise by up to 59 cents, depending on the product grade.
For the Asia-Pacific region, Adeiprene, Vibrathane and other urethane prepolymers will rise by up to $1.73 per kilogram, depending on product grade. Vibracure and other urethane curatives will rise by up to 80 cents per kilogram, depending on the product grade.