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Sale of Arlanxeo to Saudi Aramco completed / German group announces EUR 250m investment in Asia / Largest share to be spent in China

Sale of Arlanxeo to Saudi Aramco completed / German group announces EUR 250m investment in Asia / Largest share to be spent in ChinaArlanxeo produces rubber in Dormagen / Germany (Photo: Arlanxeo)German speciality chemicals company Lanxess (Cologne; announced the sale of its remaining 50% stake in rubber company Arlanxeo (Maastricht / The Netherlands; to Saudi Aramco (Dhahran / Saudi Arabia; on 31 December 2018. The relevant antitrust authorities have granted approvals for the transaction that was announced in August 2018 ? see of 10.08.2018.

Saudi Aramco is now the sole owner of Arlanxeo, and in return Lanxess received proceeds of approximately EUR 1.4 bn. The German chemical company uses the transaction proceeds for debt reduction.

Arlanxeo was founded in 2016 as a 50:50 joint venture ? see of 15.04.2016. The company produces synthetic elastomers for the automotive and tyre, construction as well as oil and gas industries. It employs around 3,800 people at 20 production sites in nine countries, with sales amounting to around EUR 3.2 bn in 2017.EUR 250m investment in AsiaIn other company news, Lanxess plans to invest nearly EUR 250m in the Asia-Pacific region during the next five years to boost its growth in the region. It did not give any further details on its investment plans although said most of the money will be spent in China, where the company has been present since 2005.

?For Lanxess, Asia, especially China, is a key market for business growth,? said board member Hubert Fink. Lanxess Asia Pacific president Qian Mingcheng added, ?The Chinese market is entering a new stage of development driven by consumption upgrades. As a result, Lanxess?s speciality chemicals portfolio will continue to have significant potential for continued growth.? The portfolio includes high-performance plastics for the automotive and electronics industries, flame retardants for automotive and construction applications as well as ion exchange resins and reverse osmosis membranes for water treatment and purification.

Lanxess expanded its presence in China in 2017 following the acquisition of US speciality chemicals producer Chemtura (Philadelphia, Pennsylvania; last April ? see of 25.04.2017. In China, Lanxess has nine production sites, nine R&D centres and five offices, employing more than 1,900 staff.10.01.2019 [241473-0]

» Publication Date: 10/01/2019

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