On February 1, 2010, specialty chemicals group LANXESS will mark the fifth anniversary of becoming a listed company. Some 14,600 employees working at LANXESS sites around the globe will celebrate the day the group was first listed on the Frankfurt Stock Exchange. The first price quoted for LANXESS shares on January 31, 2005, stood at EUR 15.75. Five years later, on February 1, 2010, the opening price was EUR 27.42.
Germany’s largest listed specialty chemicals group, which is based in the state of North Rhine-Westphalia, continues to write new chapters in its relatively short but eventful history. “Although we started out in unfavorable circumstances and had to overcome a number of difficult phases, we have now secured the company a position of considerable standing in the chemical industry thanks to the commitment and solidarity shown by all of our employees,” said Axel C. Heitmann, Chairman of the LANXESS Board of Management, in the run-up to the anniversary celebrations in Leverkusen. “LANXESS will continue to play a leading role in this sector globally and enjoy prominent market positions thanks to its innovative products,” he added.
Since LANXESS was entered in Cologne’s Commercial Register as an independent entity on January 28, 2005, numerous steps were taken to ensure the company’s rapid and lasting competitiveness in the international arena. (An overview of important events can be found under the following link.
The successful growth strategy on the global markets went hand-in-hand with systematic optimization of the group structures. At the outset, LANXESS was made up of 17 business units organized in four segments. Now, the specialty chemicals group focuses on three segments with 13 business units and matches the profitability of its key competitors. A total sales volume of around EUR 1.5 billion was divested. In parallel to this organizational alignment, new financial and controlling systems were also put in place. “This has created the conditions for us to emerge stronger from the global economic crisis,” remarked Heitmann.
Following successful completion of the transformation, LANXESS set its sights on growth. In order to expand business, the company has systematically focused on the BRIC states. In China, the “LANXESS goes Asia” initiative launched in 2006 has focused on acquisitions, the expansion of existing plants, the creation of joint ventures and the establishment of several research alliances. In Brazil, LANXESS acquired Petroflex, Latin America’s leading synthetic rubber manufacturer, in 2007. In India, LANXESS strengthened its presence by taking over the business assets of Gwalior last year. And in Russia, an independent LANXESS country company was founded last year. “Our growth strategy in the BRIC states faced its first trial in these times of crisis and passed this with flying colors. Asia and China in particular are currently the driving force behind economic development,” said Heitmann.
During the past five years, LANXESS’ product portfolio has been streamlined, boosted by new applications and strengthened by collaborations. As LANXESS demonstrated at the 2009 Innovation Day, the Group focuses on high-quality, technology-driven products and processes, and on sectors with less cyclical businesses. Despite the global crisis, LANXESS increased its research and innovation budget. It currently has 100 projects in the development pipeline.
World Rubber Day – organized by LANXESS in Cologne in September 2009, complete with a scientific symposium – provided an overview of the capabilities of the company’s innovative product portfolio. This event underlined LANXESS’ position as the world’s leading synthetic rubber manufacturer. In the past weeks, LANXESS has also announced the start of work on its new rubber plant in Singapore – at EUR 400 million, the largest investment in the company’s history – and the construction of a new state-of-the-art production facility for water treatment membranes in Bitterfeld, Germany.
The company’s achievements during the past five years are also reflected in the improvement in the company’s key financial figures. In 2004, LANXESS started out with an EBITDA margin pre exceptionals of 6.6 percent. By 2008, this margin increased to 11.0 percent. LANXESS had thus attained its goal of closing the gap on the average figure achieved by its competitors. In 2009, ICIS Chemical Business magazine, the leading information provider for the industry, named LANXESS “Company of the Year” due to its “outstanding economic development in a challenging 2008.”
LANXESS focuses on sustainable solutions and is investing in climate-friendly technologies and processes all over the world. It has won a number of awards for its commitment in this area. For example, the new waste air treatment unit at the Port Jérôme site in France won the “Prix Entreprises et Environnement” in 2009. The panel of judges described the regenerative thermal oxidizer – RTO for short – as an exemplary green production process. At the end of 2009, LANXESS received an award in India for its water resource management. The judges were impressed by the company’s household wastewater treatment plant based on reverse osmosis technology.
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