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
This news release contains forward-looking statements based on current assumptions and forecasts made by the management of Rhein Chemie Rheinau GmbH. 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 our sole stockholder LANXESS Deutschland GmbH and the estimates given here. These factors include those discussed in LANXESS AG’s reports to the Frankfurt Stock Exchange. LANXESS AG and Rhein Chemie Rheinau GmbH assume no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.