Lanxess backs tyre products despite slowdown

By John Whitehead, Plastics & Rubber News

Lanxess is pressing ahead with new tyre products designed to reduce rolling resistance that is estimated to account for one quarter of all fuel consumption. The company is looking to rubber additive Nanoprene as an “important development for green tyres”, which greatly reduces wear without compromising grip.

Similar hopes are entertained for PBR4003, a special solution SBR that the company plans to launch mid year as it readies itself for the September celebration of 100 years of synthetic rubber, discovered at the Wuppertal site, which is still operated by the Bayer spin off company today.

Speaking at Lanxess's annual press conference in Dusseldorf today, chairman Axel Heitmann acknowledged that world tyre consumption will show “a slight dip this year for the first time”, but believes that the company's high-end products leave it well placed to deal with the conditions.

The group experienced similar dramatic fourth quarter declines as many of its peers, with volumes in its performance polymers business, comprising synthetic rubber and semi crystalline polymers, down by 32 percent on the prior year, Heitmann told prw.com.

The group experienced similar dramatic fourth quarter declines as many of its peers, with volumes in its performance polymers business, comprising synthetic rubber and semi crystalline polymers, down by 32 percent on the prior year, Heitmann told prw.com.

And although seeing no signs of recovery, Heitmann remains confident that the company's transformation since its formation and 2008 gearing at 61 percent makes it competitive with industry counterparts. Despite the fourth quarter collapse, the performance polymers business still turned in an EBITDA pre-exceptionals of €413m (€376m) although the figure was boosted by 2008 Brazilian acquisition Petroflex.

Meanwhile, Lanxess has seen a major change in the pattern of its shareholders with hedge funds, which had a 60-65 percent stake in 2005 now down to just 5-10 percent while “traditional investors” are up to 70-80 percent from 20-25% four years ago cfo Matthias Zachert told journalists.

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Staff report from Plastics & Rubber Weekly (a Crain publication)