Lanxess progresses SR capacity rejig

London – German speciality chemical producer Lanxess is in talks with both customers and employees following the decision, in March, to close its EPDM rubber plant in Marl, Germany, and shift production elsewhere.

With regard to the 120-strong workforce at Marl, a Lanxess spokeswoman told ERJ that the company was in talks with works councils and expected to have results by the end of 2015, when the production is due to stop at the 70ktpa plant.

While Lanxess intends to shift production volumes to its plants in Changzhou, China and Geleen, The Netherlands, the spokeswoman said that no grades were to be lost as a result of the transfers.

“Some customers will have to slightly modify their production when receiving some grades from another plant”, she commented. “Lanxess will of course support their customers in doing so.”

Lanxess announced in March, that the plant was its least competitive site due to its small scale limitations and high energy and raw material costs.

The closure is part of Lanxess’ three-phased realignment programme, which started in November last year.

The programme also includes the scale-down of its US and Brazilian neodymium-based butadiene rubber (Nd-PBR) during the course of 2016. The production network of Nd-PBR will be adjusted and the new focus of the production will be in Singapore and Dormagen, Germany.

“The Nd-PBR plants in Cabo de Santo Agostinho, Brazil, and Orange, US, will then only serve the regional markets,” the Lanxess representative explained. The capacities freed in the Orange plant, she noted, will then be used for producing other butadiene rubbers like SSBR, Li-PBR or Co-PBR.

According to Lanxess, only three out of four production lines in Orange will be operated simultaneously, thus reducing the capacity to use accordingly.

Lanxess’ 140ktpa Nd-PBR plant in Singapore began operation in the first quarter of this year and, along with the Dormagen site, is expected to act as the main Lanxess facility to provide Nd-PBR.

“The plant started up smoothly. The first in-spec material has been produced and the approbation phase with customers is now about to start,” the spokesman reported.

“We will test production capabilities of the plant regarding quality and volume in the second quarter,” she said, adding Lanxess expected to deliver commercial products during the fourth quarter according to customer demand.

Lanxess told ERJ earlier in January that its Singapore plant and its EPDM plant in China – both launched earlier this year, would be ramped up gradually to avoid generating further price pressure.