LANXESS plans to sell Dorlastan fibers business to Asahi Kasei Fibers of Japan
The chemicals group Lanxess has completed the search for a purchaser for its Dorlastan® fibers business. This morning, LANXESS and Asahi Kasei Fibers Corporation (AKF) of Osaka, Japan, widely agreed on the probable text of a sale and purchase agreement for the Dorlastan® business and signed a memorandum of understanding. The agreement itself is expected to be signed shortly. The transaction will be subject to the approval of the relevant antitrust authorities. The parties have agreed not to disclose the purchase price. The Dorlastan® Fibers-business includes production facilities at Dormagen, Germany, and Bushy Park, South Carolina, United States.
The deal will mark the implementation of LANXESS's first portfolio adjustment. LANXESS had repeatedly stated that activities that would have better prospects as part of another company are to be placed into partnerships or divested.
To make the site at Dormagen, Germany, competitive a plan for the future has been agreed with AKF including a gradual reduction in employment that will be implemented in a socially responsible manner. The business currently has some 280 employees, about 170 of whom will be transferred to AKF. Limited restructuring is also planned to take place at the U.S. site in Bushy Park. AKF plans to retain 160 of the approximately 190 people currently employed there, a large proportion of the positions to be cut over the next two years being held by temporary staff.
"The Dorlastan® fibers business has suffered for many years from the migration of textile markets to Asia," said LANXESS Management Board Chairman, Dr. Axel C. Heitmann. "Selling the business to AKF enables LANXESS to avoid closing the Dormagen site, which has been unprofitable for years. This solution offers future perspectives for a substantial proportion of the workforce. Acquiring the Dorlastan® business will enable AKF to strengthen its position as a major manufacturer of synthetic elastic fibers and expand its geographical presence."
LANXESS already initiated the restructuring of the fibers business in the spring of this year. Effective April 1, 2005, the polyamide and polyester monofilaments business was carved out of the former Dorlastan Fibers & Monofil GmbH and transferred to a separate company, Perlon Monofil GmbH. The two business areas had no customers or products in common and operated in different markets. This reorganization paved the way for the sale of the Dorlastan® business.
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