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Europe: Lanxess rolls out program, combines business units for competitiveness

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Lanxess has defined a three-phase program “Let’s Lanxess again”, divided into business and administration structure competitiveness, operations competitiveness, and portfolio competitiveness.

The group-wide restructuring program initiated by the board of management on July 24, 2014 will initially focus on the first area – the business and administration structure competitiveness.

Preparations for the following phases have already begun.

Effective January 1, 2015, the company will merge certain business units, reducing their number from 14 to 10.

It is also streamlining its global administration by reducing the workforce on a cross-functional basis and consolidating specific areas of activity.

The respective employee representatives will be involved in the process.

This more efficient organizational structure is designed to enhance Lanxess’ market and customer focus and reduce costs, says the company.

It is also aiming for savings on all cost types.

Consolidation of business units

Lanxess will combine the butyl rubber and performance butadiene rubbers business units to form the tire and specialty rubbers business unit.

This takes account of the overlapping customer and regional structures in the established markets, as well as complementary strengths in the emerging economies.

In addition, the company will recombine the high performance elastomers and keltan elastomers business units under high performance elastomers due to overlaps in the customer structure.

Meanwhile, the rubber chemicals business unit’s specialty chemicals product line, the functional chemicals business unit and the Rhein Chemie business unit will be combined to form the new Rhein Chemie additives business unit.