Lanxess exits polymer business with €460m sale of urethanes unit to Ube

Cologne, Germany – Lanxess has exited the polymers business with the €460 million sale of its urethanes systems unit to Japan’s Ube Corp.

The German chemicals company expects proceeds of around €500 million from the transaction, helping reduce net debt and lowering its leverage ratio by 0.5%.

The urethane systems business comprises five manufacturing sites globally, as well as application laboratories in the US, Europe and China.

Ube will take over all operations from Lanxess with a total of around 400 employees, said the German group's 3 Oct announcement.

The business unit generated sales of around €250 million during the 12 months to end of June, according to the statement.

Lanxess chairman Matthias Zachert described the divestment as a milestone in the company’s portfolio transformation towards it becoming a “pure-play speciality chemicals company.”

“We are convinced that the urethanes business will have significantly enhanced opportunities for growth and development under the umbrella of Ube,” Zachert added.

The transaction, which remains subject to the approval of relevant authorities, is expected to be completed in the first half of 2025.