LANXESS Plans to Transfer its Technical Services to a Separate Legal Entity
Nov 28, 2006
LEVERKUSEN -- The LANXESS chemicals group plans to transfer its Technical Services group function to a separate legal entity. This future wholly owned subsidiary is scheduled to change internally to a new worktime and service model already on January 1, 2007. "I am delighted that in collaboration with a working group representing the Central Works Council we have found a solution so quickly that reflects the interests of both the employees and the company," comments Ulrich Koemm, Member of LANXESS's Management Board. "In future, through an increase in flexibility and efficiency, the technical services group function is to take on tasks that were previously carried out by external service providers."
The agreement still has to be approved by LANXESS's Central Works Council and the German Mine, Chemical and Power Workers' Union (IG BCE). Its central points are:
The new company will have a chance to position itself competitively, like an external service-provider. Key performance indicators and savings targets will be defined for it. These will be reviewed jointly after 12 and 24 months. If the targets are not met, alternative solutions will be examined.
All the 700 or so employees working for the Technical Services group function and the maintenance units in the business units are to be transferred to the new company.
Worktime is to be increased from 35 to 40 hours per week. Compensation will be based on a 37.5 hour working week. In addition, variable compensation payments will be agreed on the basis of attainment of the new company's targets.
The establishment of the new subsidiary is part of the fourth package of restructuring measures announced in July.
The Technical Services group function supports the business units worldwide by providing a range of services that are essential for the production and supply of chemical products. These include operating workshops and the maintenance of production facilities.
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.
