COLOGNE, Germany (July 29, 2014) — Lanxess A.G., a synthetic rubber producer, has launched a groupwide restructuring program that will result in streamlined administrative structures and decision-making processes.
The firm also will aim to improve customer and market orientation within its business units.
Talks about planned measures resulting from the program are being held with the supervisory board and employee representatives, the company said, in order to develop measures to reduce costs and increase competitiveness.
The firm said more information about the program will be forthcoming during the second half of the year.
CEO Matthias Zachert — chairman since April 1 — said at the time of the first quarter results that Lanxess “must become significantly more competitive and profitable again. The focus will therefore be on the business portfolio, our business units, the efficiency of our administration and our production sites.”
Lanxess is a specialty chemicals producer that reported sales of about $11.5 billion in 2013 and operates 52 production sites worldwide. It employs about 17,000 in 31 countries.
In May Mr. Zachert told shareholders, “We are currently facing major challenges — especially as the competitive environment for our business with synthetic rubber has changed.
“I would like to already prepare you today for the fact that the next two to three years won’t be easy.”
This report appeared on the rubbernews.com, the website Rubber & Plastics News, an Akron-based sister publication of Tire Business.