Lanxess to close EPDM plant, rejig butadiene rubber ops

Cologne, Germany – Lanxess is to stop EPDM rubber production at its Marl site in Germany and restructure its neodymium-based butadiene rubber (Nd-PBR) operations, the company announced 19 March.

The moves are part of plans to address market over-capacities and improve the competitiveness of Lanxess' synthetic rubber (SR) business - towards finding a new ownership structure for the business.

The reorganisation is expected to eliminate around 140 jobs and achieve annual savings of €20 million. It will leave Lanxess with one production facility each for EPDM and Nd-PBR rubber in North America, Latin America, Asia and Europe.

The 120-employee Marl facility is to close at the end of 2015. The 70-kilotonne-per-annum unit, said Lanxess, is the least competitive within its EPDM production network, due to its relatively small scale and high energy and raw material costs.

Scheduled for next year, the Nd-PBR rejig will see Lanxess focus production at its sites in Dormagen, Germany, and Singapore. Nd PBR facilities in Orange, Texas, and Cabo de Santo Agostinho, Brazil, will then only supply their respective regions.

These moves, said Lanxess, will free up capacities at its Port-Jérôme facility in France, while the Orange unit will, in future, manufacture other butadiene rubber grades.

Lanxess said it will also reduce “the capacity to use for butadiene rubbers in Orange as part of its flexible asset management, operating only three out of four production lines simultaneously.”

The restructure is under the second phase of a realignment of Lanxess’ rubber production and supply chains. This is to be followed by a third phase involving new “co-operations” with other companies.

Lanxess said it is currently in talks with potential partners and “will possibly" report on these in the second half of 2015.