LANXESS plans package of measures to speed development at Saltigo

EUR 30 million investment to modernize the production base / EUR 10 million to build a high-tech multi-purpose plant

18-Jan-2007

Lanxess plans to develop the business of its fine chemicals subsidiary Saltigo. EUR 30 million has been earmarked for plant modernization, and new worktime models are to be introduced. A state-of-the-art multi-purpose facility costing a further EUR 10 million is already under construction. "The decision made in early summer 2005 to realign the fine chemicals business, which had been making substantial losses, led to a turnaround," said LANXESS Management Board Chairman Dr. Axel C. Heitmann. However, despite higher capacity utilization and a steady increase in earnings in recent quarters, profitability is not yet satisfactory by international standards. This makes further action necessary on the production side and in the area of human resources. Negotiations on this are now to begin with the employee representatives.

"Saltigo's employees have put in a remarkable effort and succeeded in turning the business around," said Heitmann. "LANXESS is supporting their endeavors with an investment package to drive forward the company's development." The EUR 30 million is to be spent to modernize existing production facilities at the Saltigo sites in Leverkusen and Dormagen and adapt them to changing market needs and customer requirements. "We want to secure our share of the growing demand in the fine chemicals market," said Saltigo's Managing Director Dr. Axel Westerhaus. "The most important condition for that is an appropriate, state-of-the-art plant structure." The first implementation phase, which is already under way, involves converting existing plants in Leverkusen to the production of pharmaceutical active ingredients or intermediates. This EUR 10 million capital expenditure project is specifically designed to strengthen activities in pharmaceutical active ingredients that are still in the early stages of development.

In parallel with plant flexibilization, LANXESS is also planning the introduction of a new human resources concept for Saltigo. The increased demand for complex and sophisticated production processes means the skilled workforce needs to have greater flexibility and be more intensively deployed. An innovative and specially tailored human resources concept is required that will enable the sustained implementation of the investment package and do justice to Saltigo's special type of business. Negotiations are therefore to take place on increasing the work week to 40 hours without a raise in pay, a new shift roster, a uniform flextime system and more flexible personnel deployment.

https://www.chemeurope.com/en/news/60919/lanxess-plans-package-of-measures-to-speed-development-at-saltigo.html