Lanxess move butyl headquarters to Singapore, improves sales in Q3

ERJ staff report (RD)

Leverkusen, Germany - Lanxess AG will move its butyl rubber headquarters from Fribourg, Switzerland to Singapore in 2010 to satisfy growing customer demand in the Asia-Pacific region., the company announced in its 2009 third quarter (Q3) results.

“We want to be close to our customers in the Asia-Pacific and being in Singapore allows us to do that, said Ron Commander, global head of the Lanxess Butyl Rubber business unit. "Singapore's pro-business environment, the ability to attract talents from all over the world, and a world-class infrastructure for logistics and supply chain management are all compelling reasons for us to operate our global business from here,” he added.

The Butyl Rubber business unit has previously announced it will build a 100 000-ton per annum plant on Jurong Island, and has scheduled production to start in 2014. With an investment of up to Euro 400 million, the plant will be the largest of its kind in Asia and equipped with a unique breakthrough technology that will make it the world's most modern butyl rubber facility.

The company's Performance Polymers business, which includes its synthetic rubber activities, reported sales up by 17 percent in Q3, quarter-on-quarter, to Euro 656 million. “The top-line development was driven by a stronger-than-expected September month due to a pick-up in demand for winter tyres and pre-buying by customers ahead of price increases,” the German chemical company commented. The butyl rubber unit is developing very positively, Lanxess said, as EBITDA pre-exceptional rose 46 percent quarter-on-quarter to Euro 76 million.

The company's overall sales fell 24 percent in Q3, compared to the same period last year, to Euro 1370 million but increased 11 percent quarter-on-quarter. “A slight restocking was visible in the third quarter with a number of customers in Performance Polymers bringing forward their purchases of announced price increases for the fourth quarter,” Lanxess commented.

“Our self-help measures coupled with an improved economic climate, in particular in China, has supported us in delivering a very respectable third quarter performance,” said Axel Heitmann, Lanxess chairman.

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Lanxess AG moves Butyl Rubber Global Headquarters to Singapore from Lanxess AG

Q3 press release from Lanxess AG