Rhein Chemie remains committed to growth strategy: the company posts sales of EUR 226 million in fiscal 2009
Tuesday, 23. March 2010 The Rhein Chemie Group ended the 2009 fiscal year with worldwide sales of EUR 226 million compared to EUR 281 million in the previous year.
The Rhein Chemie Group ended the 2009 fiscal year with worldwide sales of EUR 226 million compared to EUR 281 million in the previous year. The drop in sales of nearly 20 percent is a result of the global economic crisis and the far-reaching impact it had on the automotive industry, which is of great importance to Rhein Chemie.
The wholly owned subsidiary of the Leverkusen-based specialty chemicals group LANXESS took early steps at the beginning of 2009 to counteract the drop in sales by implementing a global package of structural improvements and measures to optimize cost and capital structures.
The dramatic decline in sales in the first half of the year slowed in the second half, due in particular to the economic revival in the Asian region, where the share of global sales rose to 28 percent, compared to 24 percent in 2008.
“Despite the continuing crisis, we remain committed to our successful business model and to our growth strategy,” says Dr. Anno Borkowsky, CEO and President of Rhein Chemie Rheinau GmbH, Mannheim. As a supplier of customized additives and service products for the rubber, lubricants and plastics industries, Rhein Chemie is successful worldwide, operating close to its markets and customers.
After investing EUR 12 million in 2008 in the Mannheim and Qingdao, China, sites to install new, modern plants for the production of polymer-bound rubber chemicals and industrial lubricant additives, Rhein Chemie, undeterred by the crisis, launched strategic investments in Russia in 2009. “With these important investments, Rhein Chemie has established a very strong position in all of the strategically important countries. In a few weeks, we will be breaking ground for our Russian production facility in Nizhny Novgorod. We are optimistic for the future,” says Dr. Borkowsky, emphasizing the company’s alignment toward growth.
The global recovery of the markets, driven by Asia, is reflected in first-quarter sales, which in all regions are significantly above last year’s figures.
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 800-strong workforce develops, produces and sells products for various sectors of the rubber, lubricant and plastics industries worldwide. The company is headquartered in Mannheim-Rheinau, Germany and has production facilities in Europe, Asia and North and South America. Rhein Chemie is a wholly owned subsidiary of the LANXESS Group, Leverkusen, Germany
Mannheim, 23. March 2010
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.