Lanxess realigns its EPDM rubber business

Leverkusen, Germany - Lanxess AG is to realign its ethylene-propylene-diene rubber (EPDM) business. Marketing, research, production and controlling will in future be assigned to Lanxess Buna GmbH in Marl, Germany. Similarly, Lanxess will pool its EPDM operations in the US in a separate legal entity to be known as Lanxess Buna LLC. Robert Gnann, Managing Director of Lanxess Buna GmbH, will assume global responsibility for the EPDM business.

The EPDM line is part of the portfolio of the Technical Rubber Products (TRP) business unit. To take advantage of synergies, sales and technical service for EPDM will continue to be managed together with the other products of the TRP business unit, said the company.

“EPDM is an important element of our core business. This new focus will help us meet customer demand more quickly, respond more speedily and expand our position as a major global supplier of technical rubber,” explains Dr. Günther Weymans, the head of Lanxess's Technical Rubber business unit. “These measures also increase cost transparency, thus making cost monitoring more efficient.”

Although Lanxess has declined to make any official comment, there is speculation in the market that the move comes as preparation for an acquisition of a larger EPDM business. Chemtura has recently said it is in advanced negotiations with an un-named company to sell its EPDM business and some of its rubber chemicals activities.

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Press release from Lanxess