News

News

2010-02-01

LANXESS employees around the globe celebrate fifth anniversary of listing

Company first listed on the Frankfurt Stock Exchange on January 31, 2005

Leverkusen -

On February 1, 2010, specialty chemicals group
LANXESS will mark the fifth anniversary of becoming a listed company.
Some 14,600 employees working at LANXESS sites around the globe
will celebrate the day the group was first listed on the Frankfurt Stock
Exchange. The first price quoted for LANXESS shares on January 31,
2005, stood at EUR 15.75. Five years later, on February 1, 2010, the
opening price was EUR 27.42.

Germany’s largest listed specialty chemicals group, which is based 
in the state of North Rhine-Westphalia, continues to write new chapters
in its relatively short but eventful history. “Although we started out in
unfavorable circumstances and had to overcome a number of difficult
phases, we have now secured the company a position of considerable
standing in the chemical industry thanks to the commitment and
solidarity shown by all of our employees,” said Axel C. Heitmann,
Chairman of the LANXESS Board of Management, in the run-up to the
anniversary celebrations in Leverkusen. “LANXESS will continue to play
a leading role in this sector globally and enjoy prominent market
positions thanks to its innovative products,” he added.

Short but eventful history

Since LANXESS was entered in Cologne’s Commercial Register 
as an independent entity on January 28, 2005, numerous steps were
taken to ensure the company’s rapid and lasting competitiveness 
in the international arena. (An overview of important events can be
found under the following link: http://corporate.lanxess.com/about-lanxess/history.)


Focused group

The successful growth strategy on the global markets went hand-in-
hand with systematic optimization of the group structures. At the outset,
LANXESS was made up of 17 business units organized in four
segments. Now, the specialty chemicals group focuses on three
segments with 13 business units and matches the profitability of its key
competitors. A total sales volume of around EUR 1.5 billion was
divested. In parallel to this organizational alignment, new financial and
controlling systems were also put in place. “This has created the
conditions for us to emerge stronger from the global economic crisis,”
remarked Heitmann.

Valuable acquisitions

Following successful completion of the transformation, LANXESS set its
sights on growth. In order to expand business, the company has
systematically focused on the BRIC states. In China, the “LANXESS
goes Asia” initiative launched in 2006 has focused on acquisitions, the
expansion of existing plants, the creation of joint ventures and the
establishment of several research alliances. In Brazil, LANXESS
acquired Petroflex, Latin America’s leading synthetic rubber
manufacturer, in 2007. In India, LANXESS strengthened its presence by
taking over the business assets of Gwalior last year. And in Russia, 
an independent LANXESS country company was founded last year.
“Our growth strategy in the BRIC states faced its first trial in these times
of crisis and passed this with flying colors. Asia and China in particular
are currently the driving force behind economic development,” said
Heitmann.

Innovative product portfolio

During the past five years, LANXESS’ product portfolio has been
streamlined, boosted by new applications and strengthened by
collaborations. As LANXESS demonstrated at the 2009 Innovation Day,
the Group focuses on high-quality, technology-driven products and
processes, and on sectors with less cyclical businesses. Despite the
global crisis, LANXESS increased its research and innovation budget. It
currently has 100 projects in the development pipeline.

World Rubber Day - organized by LANXESS in Cologne in September
2009, complete with a scientific symposium - provided an overview of
the capabilities of the company’s innovative product portfolio. This event
underlined LANXESS’ position as the world’s leading synthetic rubber
manufacturer. In the past weeks, LANXESS has also announced the
start of work on its new rubber plant in Singapore – at EUR 400 million,
the largest investment in the company’s history – and the construction of
a new state-of-the-art production facility for water treatment membranes
in Bitterfeld, Germany.

Increased earning power

The company’s achievements during the past five years are also
reflected in the improvement in the company’s key financial figures. In
2004, LANXESS started out with an EBITDA margin pre exceptionals of
6.6 percent. By 2008, this margin increased to 11.0 percent. LANXESS
had thus attained its goal of closing the gap on the average figure
achieved by its competitors. In 2009, ICIS Chemical Business magazine,
the leading information provider for the industry, named LANXESS
“Company of the Year” due to its “outstanding economic development in
a challenging 2008.”

Sustainable solutions

LANXESS focuses on sustainable solutions and is investing in climate-
friendly technologies and processes all over the world. It has won a
number of awards for its commitment in this area. For example, the new
waste air treatment unit at the Port Jérôme site in France won the “Prix
Entreprises et Environnement” in 2009. The panel of judges described
the regenerative thermal oxidizer – RTO for short – as an exemplary
green production process. At the end of 2009, LANXESS received an
award in India for its water resource management. The judges were
impressed by the company’s household wastewater treatment plant
based on reverse osmosis technology.
LANXESS’ new nitrous oxide reduction unit (known as LARA) at its
Krefeld-Uerdingen site was a winner in the “365 Landmarks in the Land
of Ideas” contest under the patronage of German President Dr. Horst
Köhler. A total of more than 2,200 entries were submitted. LARA will
enable LANXESS to cut its greenhouse gas emissions by 80 percent in
Germany by 2012. Last but not least, a cogeneration plant is due to
open this spring at the Porto Feliz site in Brazil. The plant generates
both steam and electricity for the entire site by burning sugar cane
waste.

Corporate social responsibility

LANXESS is dedicated to engaging young people in science from an
early age. During the past two years, the group has invested
approximately EUR 1.5 million in an education initiative that started in
2008. The initiative’s key aim is to help local high schools achieve long-
term improvement in their teaching of natural sciences and in their
research facilities. This commitment to natural sciences is reinforced by
numerous practical events that the company organizes.

The commitment to lit.COLOGNE announced in December 2009
represents a new means of transferring knowledge and encouraging
scientific learning. “Taking part in Europe’s largest literature festival, 
our plans to relocate the group’s headquarters to Cologne and our
sponsorship of the LANXESS arena underline our clear commitment to
our roots in North Rhine-Westphalia,” concluded Heitmann.


LANXESS is a leading specialty chemicals company with sales of EUR 6.58 billion in 2008 and currently around 14,600 employees in 23 countries. The company has operations at 46 sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.


Leverkusen,     February 1, 2010   
eic        (2010-00010E)

About LANXESS

LANXESS is a leading specialty chemicals company with sales of EUR 8.8 billion in 2011 and currently around 16,800 employees in 30 countries. The company is at present represented at 49 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. LANXESS is a member of the leading sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.


Leverkusen,      2012


Forward-Looking Statements.

This news release may contain 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.


Information for editors:


All LANXESS news releases and their accompanying photos can be found at press.lanxess.com. Recent photos of the Board of Management and other LANXESS image material are available at photos.lanxess.com. The latest TV footage, audiofiles and podcasts can be found at multimedia.lanxess.com.


You can find further information concerning LANXESS chemistry in our WebMagazine at webmagazine.lanxess.com.