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10-10-2007

Lanxess: New Segment Structure

As part of a systematic market orientation, Lanxess AG will organize its 13 business units into three segments starting in October 2007 following the divestment of the commodity plastics activities.

In light of Lanxess’s market orientation and consistent portfolio management, the recent divestment of Lustran Polymers made it necessary to modify the segment structure. All the polymer-based businesses – in other words, the former Performance Rubber segment and the Semi-Crystalline Products business unit – are being grouped together to form the new Performance Polymers segment. The Chemical Intermediates segment is renamed “Advanced Intermediates.” And the Inorganic Pigments business unit becomes part of the Performance Chemicals segment, reflecting the specialty nature of this business. The Engineering Plastics segment therefore ceases to exist.

The company plans to invest about EUR 1 billion over the next three years to further strengthen its businesses. The focus of the investment program through 2009 will be on the ‘LANXESS goes Asia’ initiative, with some 60 % of planned capital expenditures going for capacity expansions.

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