LANXESS warns that estirénicos of Tarragona plant must be productive
The restructuring that began last year in the European unit of estirénicos is only "the first step we do to minimize the pressure of competition in Europe." Even after the transfer, we cannot guarantee anything in the future. "Everything remains in the review, even in Tarragona," concluded the world responsible for this business.
A new restructuring
"About 25 percent of our activity is still not profitable, and 30 per cent is unsatisfactory in terms of profit margins." This means that 45 percent of our activities are now profitable. "Although this is a significant overall increase compared with the previous year, obviously cannot reduce the pace of our restructuring efforts", said Heitmann.
The new measures affect the "sites" of United States, Brazil, France and Belgium, and involve the Elimination of 250 jobs out of Europe. The most drastic measure is the closure of the factory in estirenos of Camacari, in Brazil, which will be closed during the year 2006. In this business, the estirénicos, unit is concentrá all the marketing and sales in Ohio, to the detriment of Pennsylvania, and total transactions, you will lose 80 jobs.
As explained Heitmann "measures that we began to restructure the European activity already have been demonstrably effective." Lanxess is one of the leading providers of estirénicos of the world, we cannot yet correct structures. In the rapid growth of Asian markets, our position is weak, even though we operate in the region with our own facilities. In Europe and in America we have achieved positive results. "Overall, however, there still is a considerable need for action here".
Restructuring gives off
The company expects to reach a total of EUR 50 million annual profits in 2009, through the new measures planned for Polybutadiene Rubber, Butyl Rubber, inorganic pigments and resins Estirénicas.
The capital costs of Lanxess in 2005 added EUR 251 million. (in 2004: 279 million euros). Maintenance costs account for 60 per cent of the total.
In their regional plants, Germany has, by far, with the highest rate of capital expenditure, 46 per cent (approximately EUR 115 million). Investments of capital of the company in Asia are more than twice compared with the previous year.
Textiles, under surveillance
Here, the focus is currently in the chemistry business unit of textile processes (TPC), that the current global market development shows that it is still necessary action with regard to this activity.
During this year, Lanxess will therefore consider strategic options for this business unit, which is part of the area of chemical production. TCP products include ignition delayed for professional clothing, textiles and textile special soundproofing in cars. Heitman stressed that "all the activity of Lanxess and its processes, throughout the world, are kept under continuous surveillance".
Perspectives
The strength continued of the euro against the US dollar, along with a number of potential foci of attention around the world, could also negatively impact on economic development
The company expects higher growth in Ebitda before extraordinary income, coupled with a moderate increase in sales from continuing operations. All areas will be budgeted in the first quarter of 2006. Against this backdrop, Lanxess trusts achieve their common goals again this year.
The company stays true to its objective of achieving an Ebitda margin of 9 to 10 per cent, based on the sales of 2004. The reduction of the costs of the headquarters of the company, as a result of its restructuring measures will have a positive effect in this context. Another target for this year is counted positive net benefits for the group.