|Traded as||FWB: LXS|
|Founded||July 1, 2004|
|Products||polymers, intermediates and Specialty chemicals|
|Revenue|| €8.300 billion (2013)
EBITDA (pre-exceptional items):
€735 billion (2013)
|€93 million (2013)|
|€-159 million (2013)|
Number of employees
Lanxess AG (often styled all-caps as LANXESS AG) is a specialty chemicals group based in Germany, with headquarters and major operations in Cologne. It was founded in 2004 when Bayer AG spun off its chemicals operations and parts of its polymer activities. As measured by sales, Lanxess is the ninth-largest chemicals group in Germany. The company's principal product areas are in polymers, intermediate products and specialty chemicals, rubber and plastics.
In September 2012, Lanxess became a component of the DAX index, which tracks 30 major companies listed on the Frankfurt Stock Exchange. The company announced in 2011 that it would move its headquarters from Leverkusen to a newly refurbished structure in Cologne in the second half of 2013, the Lanxess Tower. The move was officially completed on August 1, 2013.
Lanxess traces its roots to 1863, the year in which Friedrich Bayer & Co. was founded as a manufacturer of synthetic dyestuffs. In 2004, Bayer, seeking to focus its business on healthcare and nutrition, spun off most of its chemicals business and roughly one-third of its polymers business into an independent subsidiary named Lanxess. Shares in Lanxess AG began to trade on the Frankfurt Stock Exchange on January 31, 2005, at which time each shareholder of Bayer was issued one share of stock in Lanxess. On January 26, 2014, the company announced that its first chief executive as an independent company, Axel Heitmann, would leave when his contract expired at the end of February 2014. Matthias Zachert, former chief financial officer of Merck KGaA, took over the responsibility as CEO effective April 1, 2014.
Following its formation, Lanxess implemented a series of restructuring projects. Initially, these consisted mainly of divestments. The Fine Chemicals Business Unit was transferred to Saltigo GmbH, an independent subsidiary of Lanxess. Next, the Dorlastan synthetic fiber business was sold to Asahi Kasei Fibers. iSL-Chemie, a manufacturer of pigment preparations and special coatings in Kürten, Germany, was sold to Berlac AG for €20 million. And the Paper Chemicals Business Unit was sold to the Finnish paper group Kemira for €88 million.
In 2007, the former Technical Services group function was reorganized as a wholly owned subsidiary, Aliseca GmbH. A Lanxess subsidiary, Borchers GmbH, a manufacturer of coatings, emulsion paints and inks, was sold to the OM Group in the United States. In June of the same year, Lanxess transferred its Lustran subsidiary to a joint venture with British chemicals group Ineos Ltd.
At the end of 2006, Lanxess acquired the remaining 50 percent of Chrome International South Africa (CISA) from its joint venture partner, Dow Chemical. In December 2007, the company announced its takeover of the Brazilian manufacturer of synthetic rubber, Petroflex S.A. In February 2009, Petroflex was renamed Lanxess Elastomeros do Brasil.
Lanxess expanded its inorganic pigments business in Asia with the purchase of two production plants for iron oxide pigments from Chinese cooperation partner Jinzhou Chemicals Company Ltd. in June 2008. It opened a sales subsidiary in Moscow in March 2009 to oversee business in Russia and other CIS countries.
In June 2009, Lanxess bought the manufacturing assets of Indian company Gwalior Chemical Industries Ltd. for €82.4 million and also acquired the production facilities and businesses of Jiangsu Polyols Chemical Co. Ltd. in China for an undisclosed figure.
In January 2011, Lanxess acquired Darmex, an Argentine specialty chemicals company specializing in release agents and curing bladders for the tyre industry. In May, Lanxess completed its acquisition of Keltan elastomers business from Royal DSM NV for €310 million, combining its preexisting EPDM rubber business with the Keltan operations to form the Keltan Elastomers Business Unit. Also in 2011, Lanxess acquired Syngenta's material protection business and a US-based biocide firm, Verichem. In 2012, the company acquired a US-based curing bladder company, TCB.
Lanxess operates 14 business units divided into three product segments.
The Performance Polymers Segment includes five business units dedicated to the production, respectively, of Butyl Rubber, Performance Butadiene Rubbers, High Performance Materials (i.e., plastics), High Performance Elastomers and Keltan Elastomers. Lanxess is one of the leading producers of synthetic rubber in the world, and the segment’s products are used in automotive tires, belts, hoses and body parts, as well as in shoe soles and a wide variety of other items. The products of the Performance Butadiene Rubbers business unit, including solution styrene-butadiene rubber and neodymium-catalyzed polybutadiene rubber, are used in the production of recent designs of low-rolling-resistance tires that can result in improvements in fuel efficiency.
The Advanced Intermediates Segment consists of two business units – Advanced Industrial Intermediates and Saltigo – whose product lines include aromatic compounds, benzyls, amines, hydrazine hydrate, and other chemical compounds used in agriculture, pigments, automotive parts, construction materials and other industries.
The Performance Chemicals Segment includes business units dedicated to Functional Chemicals, Inorganic Pigments, Liquid Purification Technologies, Leather, Material Protection Products and Rubber Chemicals. Lanxess’ Rhein Chemie subsidiary, which produces customized compounds for the rubber, lubricant and plastics industries, is also grouped in this segment.
Lanxess operates under the dual management board system required of publicly traded German companies, or Aktiengesellschaft. The four-person Board of Management oversees the day-to-day management and operations of the company. The Supervisory Board oversees the Board of Management, monitoring its conduct, appointing its members, and reviewing the company’s financial statements.
- "Annual Report 2013". Lanxess. Retrieved April 30, 2014.
- The New York Times, “World business briefing, Europe, Germany: chemical spinoff,” July 17, 2004.
- Ivan Lerner,“Lanxess still seeks acquisitions,” ICIS News, Sept. 11, 2007.
- Homepage of Lanxess; segments, accessed April 30, 2014.
- Reuters, "MAN, Metro demoted in rare Dax index reshuffle," September 5, 2012.
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- "Cologne...we are happy to be here!" (http://www.worldofchemicals.com/media/lanxess-acquires-us-based-firm-tire-curing-bladders/2685.html)
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- Press release as of April 1, 2014
- Suzanne Elliott, “Lanxess Corp. scouts area for its US headquarters,” Pittsburgh Business Times, April 30, 2004.
- Robert Winder, “Lanxess names spin-out Saltigo,” Chemical and Industry, November 21, 2005.
- Technical Textiles International, “Asahi Kasei buys Dorlastan Elastane fibres business from Lanxess,” March 1, 2006.
- Paint & Coatings Industry, “Lanxess divests iSL-Chemie,” February 1, 2006.
- Nordic Business Report, “Kemira Oyj acquires Lanxess' paper chemicals business,” December 21, 2005.
- Rubber World, “Lanxess completed the sale of its textile processing chemicals business,” January 1, 2007.
- Aliseca.com, “About Us” webpage, accessed December 8, 2009.
- Ink World, “Lanxess forms JV with Ineos, divests Borchers to OM Group,” November 1, 2007.
- Chemical Engineering, “Mergers, acquisitions and deals,” January 1, 2007.
- European Rubber Journal, “Lanxess buys controlling stake in Petroflex,” January 1, 2008.
- Chemweek's Business Daily, “Lanxess buys iron oxide manufacturing assets in China,” June 26, 2008.
- Chemical Business Newsbase, “Lanxess sets up distribution company in Moscow,” May 18, 2009.
- Rubber World, “Lanxess is underpinning its long-term growth strategy in BRIC with two acquisitions in Asia,” July 1, 2009.
- BN Americas, "Lanxess acquires Argentine chemical company Darmex"
- ICIS News, "Lanxess completes acquisition of DSM Elastomers," May 3, 2011.
- Adhesives & Sealants Industry, "Lanxess acquires Verichem," November 14, 2011. (http://www.adhesivesmag.com/articles/lanxess-acquires-verichem)
- World of Chemicals, "Lanxess acquires US-based firm, Tire Curing Bladders," March 16, 2012. (http://www.worldofchemicals.com/media/lanxess-acquires-us-based-firm-tire-curing-bladders/2685.html)
- Lanxess.com, “Segments” webpage, accessed March 14, 2013.
- Stewart F. Brown, “More Traction for Fuel-Efficient Tires,” The New York Times, February 15, 2013.