Realignment of Rhein Chemie – Investment in production facilities and reduction in personnel costs at Mannheim site
Wednesday, 11. July 2007 Following negotiations with employee representatives, the management of Rhein Chemie Rheinau GmbH, a wholly owned subsidiary of chemicals group LANXESS, has adopted a comprehensive realignment program. This further strengthens the company’s core business in the areas of specialty chemicals and innovative service concepts.
Mannheim – Following negotiations with employee representatives, the management of Rhein Chemie Rheinau GmbH, a wholly owned subsidiary of chemicals group LANXESS, has adopted a comprehensive realignment program. This further strengthens the company’s core business in the areas of specialty chemicals and innovative service concepts.
Rhein Chemie is to invest around EUR 7 million in the modernization of existing units and the construction of new production facilities at its Mannheim site.
At the same time, the program is designed to save EUR 5 million annually – through both the modernization of facilities and reductions in personnel costs. In total, some 70 jobs are to be eliminated at the Mannheim site in the next few years. This is to be done in a socially responsible manner.
“Supplementing our growth projects in Asia, this program particularly enhances the competitiveness of the Mannheim site,” said Dr. Anno Borkowsky, CEO and President of Rhein Chemie Rheinau GmbH. “The planned investments express a commitment to Rhein Chemie’s headquarters.”
“This savings package is the result of intensive negotiations,” said Works Council Chairman Rainer Hippler, commenting on the results. “Unfortunately, headcount reductions could not be totally avoided. However, they are to be effected in a socially responsible manner. We have managed to avert the need to transfer parts of our operations abroad, which had been the original plan and would have meant cutting considerably more jobs at our Mannheim site. We are convinced that with this complete package we have made a significant contribution to safeguarding the future of the production site.”
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, 11. July 2007
bit (2007-07-809EN)
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.
