Crain News Service report
COLOGNE, Germany (Sept. 24, 2013) — Synthetic rubber producer Lanxess A.G. is restructuring its business to reduce costs and jobs by 2015.
The Cologne-based company said its synthetic rubber activities unit is a primary focus.
The company is aiming to save $135.3 million in annual savings from 2015 and beyond through its efforts, which will include 1,000 layoffs worldwide.
Lanxess said it will phase out positions through early retirement packages and severance pay. In addition, the variable compensation for the current business year will be reduced for those who are eligible, including the board of management.
Axel Heitmann, chairman of the board of management, said the company must take action due to the current economic situation. The firm cited a temporary weakness in demand, increased competition and volatile raw materials prices as reasons for the restructuring.
Lanxess already began the process within the Rubber Chemicals business unit by closing a site in South Africa and downsizing operations in Belgium.
The company said it will maintain its current structure of 14 business units under its three established segments.
This report appeared on www.rubbernews.com, the website of Rubber & Plastics News, an Akron-based sister publication of Tire Business.