Rhein Chemie

Rhein Chemie strengthens competitiveness – Cost optimization program to consolidate strategic core businesses

Rhein Chemie strengthens competitiveness – Cost optimization program to consolidate strategic core businesses

Tuesday, 15. May 2007 Rhein Chemie Rheinau GmbH, a wholly owned subsidiary of chemicals group LANXESS, is looking to further boost its competitiveness. To this end, the company is to strengthen its strategic core businesses: specialties and innovative service concepts. Further investments necessary for implementing the growth strategy are to be financed through cost savings.

Mannheim – Rhein Chemie strengthens competitiveness – Cost optimization program to consolidate strategic core businessesMannheim – Rhein Chemie Rheinau GmbH, a wholly owned subsidiary of chemicals group LANXESS, is looking to further boost its competitiveness. To this end, the company is to strengthen its strategic core businesses: specialties and innovative service concepts. Further investments necessary for implementing the growth strategy are to be financed through cost savings.
The company is currently drawing up a cost optimization program for the Mannheim site. All departments, facilities and processes are to be put to the test. The goal is to identify any structures which are not competitive. Talks with the Works Council will begin shortly.

“We want to focus even more on our core areas of expertise,” said Dr. Anno Borkowsky, Managing Director of Rhein Chemie Rheinau GmbH. “We will therefore invest in applications technology, innovation management and market expertise – already our strengths. We will also optimize our costs in order to finance the high investment in innovative projects. Maintaining strong earning power is essential to safeguard the long-term future of the Rhein Chemie site in Mannheim.”

Last year, Rhein Chemie already introduced its first measures in all core markets. In fall 2006, production in the USA was consolidated at one site, Chardon, Ohio, instead of two. This enabled the company to focus more on specialties, offer customized solutions and make excess capacities a thing of the past. Here too a cost-cutting program will be implemented.

At headquarters in Mannheim, Germany, a new high-tech facility for service products has been inaugurated. In Asia, Rhein Chemie has responded to the continued market growth by commissioning new units for service products in China and India.

Rhein Chemie is a chemicals company which has had a successful track record in customized additives and service products stretching back over 100 years. The approximately 900-strong workforce produces and sells products for various sectors of the rubber, lubricant, plastics, and polyurethane industries worldwide. Around 550 staff are employed at headquarters in Mannheim-Rheinau, Germany. The company has subsidiaries and production facilities in Europe, Asia, and North and South America. Rhein Chemie is a wholly owned subsidiary of LANXESS Deutschland GmbH, Leverkusen, Germany.

Mannheim, 15. May 2007
bit (2007-05-808EN)

Forward-Looking Statements

This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accept any liability whatsoever arising directly or indirectly from the use of this document.