Germany-based chemical company Lanxess is making its rubber production unit a separate, independent business unit in the Lanxess Group.
The new unit will be made of Tyre & Specialty Rubbers and High Performance Elastomers business units. These two combined have 20 plants, 3,700 employees and USD1 billion in annual sales.
A legally independent business group will make it easier to report sales figures and forge alliances, says a company representative.
The separation is part of Lanxess’ three-phase realignment program within the company. The first phase regrouped 14 of its business units down to 10, letting go of 1,000 people in the process.
The company is already starting on its second phase. It involves restructuring its EPDM and neodymium-based performance butadiene rubber production. Lanxess will close its rubber production plant in Marl, Germany and relocate it to four other regional facilities.
The last phase will focus on building partnerships in the rubber production business.
CEO Matthias Zachert said that the three-phase revamp is on schedule and that they are “currently engaged in very constructive discussions and assumes that it will achieve concrete results in the course of the second half of the year.”