LANXESS AG has taken further steps to streamline its global production network and thus reduce operating costs in the face of the economic crisis and competitive business environment. The specialty chemicals group has sold its 55 percent stake in the hydrazine hydrate joint venture LANXESS Yaxing (Weifang) Chemicals Company Ltd. to its Chinese partner Weifang Yaxing Group. The joint venture was founded in September 2004 and is based in the Weifang Industry Park in Shandong province, China. Both parties have agreed not to disclose financial details.
LANXESS will continue to produce hydrazine hydrate at its Leverkusen plant in Germany and is committed to providing a regular and long-term supply to its customers worldwide. Weifang Yaxing Group will continue to operate the assets after LANXESS’ exit.
In addition, LANXESS Corporation has sold the infrastructure and supporting services at its site in Bushy Park, South Carolina, U.S., to the investment company Cooper River Partners, LLC, for 10 million USD. The company’s Rubber Chemicals business unit will continue to manufacture at the site and has reached a long-term lease and service agreement with Cooper River.
LANXESS recently announced its Functional Chemicals business unit will transfer its colorants production from Lerma, Mexico, to its existing facility in Leverkusen, Germany, in the coming months. LANXESS also sold its remaining shareholding in the acrylonitrile butadiene styrene (ABS) joint venture to its partner INEOS in September, thus completely exiting the ABS business in 2009 as planned.
These measures run parallel to the company’s “Challenge09-12” program that has been implemented since the start of the year to help mitigate the effects of the crisis. In this way, LANXESS will cut costs worldwide by about EUR 360 million by 2012.