LANXESS Launches Expansion of ABS Plastics Production in Tarragona
February 23 , 2006
LEVERKUSEN -- The go-ahead has been given for the expansion of the LANXESS chemical company's ABS plastic production in Tarragona, Spain. The restructuring of the Styrenic Resins Business Unit in Europe is thus proceeding according to plan. "I'm convinced that, by consistently implementing our strategy, we will be able to achieve our goal of increasing the competitiveness of the Styrenic Resins Business Unit in Europe," said LANXESS Management Board member Dr. Ulrich Koemm.
The restructuring is also being warmly received by customers of the Styrenic Resins Business Unit. LANXESS and one of the world's leading suppliers of automotive wing mirrors, Schefenacker AG, based in Esslingen, Germany, have agreed on even closer cooperation in the future. A recent agreement aims to increase sales volume by well over 50 percent by the end of 2007. In future the plastics for every third automotive wing mirror in Europe will be manufactured by LANXESS in Spain. "LANXESS is our number one supplier of pigmented plastics for the coated wing mirrors we provide to major automobile manufacturers", said Hans-Joachim Lange, head of the Management Board of Schefenacker AG. LANXESS Management Board member Koemm was also well pleased: "We are delighted that this promising cooperation agreement coincides with our new start in Tarragona."
In September 2005, LANXESS agreed a cost-cutting package of EUR 10 million and announced the relocation of the European Styrenics management team and marketing department from Leverkusen to Tarragona. The company is initially providing EUR 16 million to develop production capacities there. In line with its restructuring, LANXESS is concentrating on higher-earning specialties, particularly special-purpose grades and pigmented products.
LANXESS's Styrenic Resins Business Unit is a leading European supplier of ABS plastics for various application areas. In the automotive sector LANXESS plastics help car makers to meet exacting requirements for fuel economy, safety and comfort. Unlike many raw materials manufacturers who supply components that have to be colored by the customer, LANXESS specializes in the supply of ready-pigmented products in order to preclude variations in color and quality.
This news release contains forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
