Lanxess delays butyl rubber plant in Singapore

ERJ staff report (RD)

Leverkusen, Germany - Specialty chemicals group Lanxess AG has postponed breaking ground at its new butyl rubber plant in Singapore in from Jan 2009 to Autumn 2009, the company said 19 Dec. The company expects to commence operations at the plant in 2012.

Lanxess also announced that capacity expansions in Leverkusen and Antwerp will also be postponed, as will its planned move of headquarters from Leverkusen to Cologne.

“We have decided to put off some investment projects given the decline in demand for chemical products we are seeing throughout the world. In addition, this will ensure the necessary financial flexibility for the difficult fiscal year 2009,” said Lanxess chairman, Axel Heitmann.

The company said it still expects EBITDA pre exceptionals to come in at between Euro 710 million and Euro 730 million.

Lanxess also said it is expecting a tough first quarter in 2009 and is preparing for a difficult year on the whole. “If demand stays at its current low level, we will implement further measures globally,” concluded Heitmann.

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Press release from Lanxess AG