COLOGNE, Germany—Lanxess' specialty additives division has reported a business performance "slightly below" the previous year's level overall, with sales down 11.7 percent year-on-year to $2 billion.
Earnings (EBITDA pre exceptionals) at the additives unit, which includes rubber chemicals maker Rhein Chemie, came in 19.6 percent below the prior-year level at $339 million.
The reversal reflected a "difficult market environment with weak demand due to the coronavirus pandemic," Cologne-based Lanxess said in its 2020 annual report issued March 11.
At the start of 2020, the chemicals and polymers group had forecast "weaker (specialty additives) demand from the automotive industry, especially for the rubber-based additives business."
For 2021, Lanxess forecast a significant recovery for the specialty additives segment "due to the business recovery and the new allocation of the antioxidants and process accelerators business."
"After the sharp decline in 2020, we also expect stronger demand from the automotive industry, particularly for the rubber-based additives business and the lubricants business," the group said.
