Specialty chemicals group LANXESS AG responds to the global economic crisis by taking further measures. “We have decided to put off some investment projects given the decline in demand for chemical products we are seeing throughout the world. In addition, this will ensure the necessary financial flexibility for the difficult fiscal year 2009,” explained Axel C. Heitmann, Chairman of the Board of Management of LANXESS AG.
Affected by the decision is the construction of the Butyl Rubber plant in Singapore. According to the revised plans, the new Butyl Rubber facility is expected to commence operations in 2012, with groundbreaking – previously scheduled for January 2009 – postponed until the fall. Additionally, plans for capacity expansions in Leverkusen and Antwerp and the planned move of the group headquarters from Leverkusen to Cologne will also be postponed.
Despite the decline in demand in the fourth quarter 2008, LANXESS adheres to its EBITDA pre exceptionals guidance for 2008. The EBITDA figure will be influenced by the valuation of inventories at the end of the year. The company still expects EBITDA pre exceptionals to come in at between €710 million and €730 million.
LANXESS expects demand to be very weak in the first quarter of 2009 and is preparing for a difficult year on the whole. “If demand stays at its current low level, we will implement further measures globally,” added Heitmann.
| Rudolf Eickeler Tel.: +49 214 30 40483 Fax.: +49 214 30 50691 rudolf.eickeler@lanxess.com |
