Lanxess
Encyclopedia
Lanxess AG is a specialty chemicals group based in Germany
, with headquarters and major operations in Leverkusen
. It was founded in 2004 when Bayer AG
spun off its chemicals operations and parts of its polymer activities. As measured by sales, Lanxess is the fourth largest chemicals group in Germany. The company's principal product areas are in specialty, basic and fine chemicals, rubber
and plastics.
was founded as a manufacturer of synthetic dyestuffs. In 2004, Bayer, seeking to focus its business on healthcare and nutrition, spun off most of its chemicals business and roughly one-third of its polymers business into an independent subsidiary named Lanxess. Shares in Lanxess AG began to trade on the Frankfurt Stock Exchange
on January 31, 2005, at which time each shareholder of Bayer was issued one share of stock in Lanxess.
Business Unit was transferred to Saltigo GmbH, an independent subsidiary of Lanxess. Next, the Dorlastan synthetic fiber
business was sold to Asahi Kasei
Fibers. iSL-Chemie, a manufacturer of pigment
preparations and special coatings in Kürten
, Germany, was sold to Berlac AG for €20 million. And the Paper chemicals
Business Unit was sold to the Finnish paper group Kemira
for €88 million.
In 2006, Lanxess sold its Textile Processing Chemicals
Business Unit (excluding North American assets) to Egeria Capital for €54 million. The North American textile assets were sold to StarChem.
In 2007, the former Technical Services group function was reorganized as a wholly owned subsidiary, Aliseca GmbH. A Lanxess subsidiary, Borchers GmbH – a manufacturer of coatings, emulsion paints and inks – was sold to the OM Group
in the United States. In June of the same year, Lanxess transferred its Lustran subsidiary to a joint venture with British chemicals group Ineos Ltd.
Lanxess expanded its inorganic pigments business in Asia with the purchase of two production plants for iron oxide
pigments from Chinese cooperation partner Jinzhou Chemicals Company Ltd. in June 2008. It opened a sales subsidiary in Moscow
in March 2009 to oversee business in Russia
and other CIS
countries.
In June 2009, Lanxess bought the manufacturing assets of Indian company Gwalior Chemical Industries Ltd. for €82.4 million and also acquired the production facilities and businesses of Jiangsu Polyols Chemical Co. Ltd. in China
for an undisclosed figure.
, Performance Butadiene Rubbers, Semi-Crystalline Products (i.e., plastics) and Technical Rubber Products. Lanxess is one of the leading producers of synthetic rubber in the world, and the segment’s products are used in automotive tires, belts, hoses, shoe soles and a wide variety of other items.
The Advanced Intermediates Segment consists of two business units – Basic Chemicals and Saltigo – whose product lines include aromatic compounds, benzyl
s, amines, hydrazine hydrate
, and other chemical compounds used in agriculture, pigments, automotive parts, construction materials and other industry sectors.
The Performance Chemicals Segment includes business units dedicated to Functional Chemicals, Inorganic Pigments, Ion Exchange Resins, Leather
, Material Protection Products and Rubber Chemicals. Lanxess’ Rhein Chemie subsidiary, which produces customized compounds for the rubber, lubricant and plastics industries, is also grouped in this segment.
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, with headquarters and major operations in Leverkusen
Leverkusen
Leverkusen is a city in North Rhine-Westphalia, Germany on the eastern bank of the Rhine. To the South, Leverkusen borders the city of Cologne and to the North is the state capital Düsseldorf....
. It was founded in 2004 when Bayer AG
Bayer
Bayer AG is a chemical and pharmaceutical company founded in Barmen , Germany in 1863. It is headquartered in Leverkusen, North Rhine-Westphalia, Germany and well known for its original brand of aspirin.-History:...
spun off its chemicals operations and parts of its polymer activities. As measured by sales, Lanxess is the fourth largest chemicals group in Germany. The company's principal product areas are in specialty, basic and fine chemicals, rubber
Synthetic rubber
Synthetic rubber is is any type of artificial elastomer, invariably a polymer. An elastomer is a material with the mechanical property that it can undergo much more elastic deformation under stress than most materials and still return to its previous size without permanent deformation...
and plastics.
History
Lanxess’ roots can be traced back to 1863, the year in which Friedrich Bayer & Co.Bayer
Bayer AG is a chemical and pharmaceutical company founded in Barmen , Germany in 1863. It is headquartered in Leverkusen, North Rhine-Westphalia, Germany and well known for its original brand of aspirin.-History:...
was founded as a manufacturer of synthetic dyestuffs. In 2004, Bayer, seeking to focus its business on healthcare and nutrition, spun off most of its chemicals business and roughly one-third of its polymers business into an independent subsidiary named Lanxess. Shares in Lanxess AG began to trade on the Frankfurt Stock Exchange
Frankfurt Stock Exchange
The Frankfurt Stock Exchange is the world's 12th largest stock exchange by market capitalization. Located in Frankfurt am Main, Germany, the Frankfurt Stock Exchange is owned and operated by Deutsche Börse, which also owns the European futures exchange Eurex and the clearing company...
on January 31, 2005, at which time each shareholder of Bayer was issued one share of stock in Lanxess.
Name
The name "Lanxess" was created as a portmanteau word combining the French word "lancer" (meaning "to launch") with the English word "success."Divestments
Following its formation, Lanxess implemented a series of restructuring projects. Initially, these consisted mainly of divestments. The Fine ChemicalsFine chemicals
Fine chemicals are pure, single chemical substances that are commercially produced with chemical reactions for highly specialized applications. Fine chemicals produced can be categorized into active pharmaceutical ingredients and their intermediates, biocides, and specialty chemicals for technical...
Business Unit was transferred to Saltigo GmbH, an independent subsidiary of Lanxess. Next, the Dorlastan synthetic fiber
Synthetic fiber
Synthetic fibers are the result of extensive research by scientists to improve on naturally occurring animal and plant fibers. In general, synthetic fibers are created by forcing, usually through extrusion, fiber forming materials through holes into the air, forming a thread...
business was sold to Asahi Kasei
Asahi Kasei
is a Japanese company. The main products are chemicals and materials science. The company has around 25,000 employees and had consolidated sales of ¥ 1.7 trillion in 2008. It was founded in May 1931, using the paid in capital of Nobeoka Ammonia Fiber Co., Ltd, a Nobeoka, Miyazaki based producer of...
Fibers. iSL-Chemie, a manufacturer of pigment
Pigment
A pigment is a material that changes the color of reflected or transmitted light as the result of wavelength-selective absorption. This physical process differs from fluorescence, phosphorescence, and other forms of luminescence, in which a material emits light.Many materials selectively absorb...
preparations and special coatings in Kürten
Kürten
Kürten is a village and a municipality in the Rheinisch-Bergischer Kreis, in North Rhine-Westphalia, Germany.-Neighbouring places:Nearby cities include Bergisch Gladbach, Overath, Wermelskirchen, and Wipperfürth...
, Germany, was sold to Berlac AG for €20 million. And the Paper chemicals
Paper chemicals
-Optical brightening agent:Optical brightener is used to make paper appear more white. Optical brightening agents use fluorescence to absorb invisible radiation from the ultraviolet part of the light spectrum and re-emit the radiation as light in the visible blue range. The optical brightening...
Business Unit was sold to the Finnish paper group Kemira
Kemira
Kemira Oyj is a chemical industry group that consists of three main segments. Kemira is headquartered in Helsinki, Finland.Kemira’s main shareholder is Oras Invest Oy and its owners, members of the Paasikivi family. Its former main owner, the State of Finland, sold the largest part of its holding...
for €88 million.
In 2006, Lanxess sold its Textile Processing Chemicals
Textile manufacturing
Textile manufacturing is a major industry. It is based in the conversion of three types of fibre into yarn, then fabric, then textiles. These are then fabricated into clothes or other artifacts. Cotton remains the most important natural fibre, so is treated in depth...
Business Unit (excluding North American assets) to Egeria Capital for €54 million. The North American textile assets were sold to StarChem.
In 2007, the former Technical Services group function was reorganized as a wholly owned subsidiary, Aliseca GmbH. A Lanxess subsidiary, Borchers GmbH – a manufacturer of coatings, emulsion paints and inks – was sold to the OM Group
OM Group
OM Group Incorporated is a metal-based chemistry firm based in Cleveland, Ohio, United States. It was ranked #992 on the 2009 Fortune 1000. It is a provider of speciality chemicals, advanced materials and technologies.- Overview :...
in the United States. In June of the same year, Lanxess transferred its Lustran subsidiary to a joint venture with British chemicals group Ineos Ltd.
Ineos
INEOS Group Limited is a privately owned multinational chemicals company headquartered in Lausanne, Switzerland and with its registered office in Lyndhurst, United Kingdom...
Acquisitions
At the end of 2006, Lanxess acquired the remaining 50 percent of Chrome International South Africa (CISA) from its joint venture partner, Dow Chemical. In December 2007, the company announced its takeover of the Brazilian manufacturer of synthetic rubber, Petroflex S.A. In February 2009, Petroflex was renamed Lanxess Elastomeros do Brasil.Lanxess expanded its inorganic pigments business in Asia with the purchase of two production plants for iron oxide
Iron oxide
Iron oxides are chemical compounds composed of iron and oxygen. All together, there are sixteen known iron oxides and oxyhydroxides.Iron oxides and oxide-hydroxides are widespread in nature, play an important role in many geological and biological processes, and are widely utilized by humans, e.g.,...
pigments from Chinese cooperation partner Jinzhou Chemicals Company Ltd. in June 2008. It opened a sales subsidiary in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
in March 2009 to oversee business in Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
and other CIS
Commonwealth of Independent States
The Commonwealth of Independent States is a regional organization whose participating countries are former Soviet Republics, formed during the breakup of the Soviet Union....
countries.
In June 2009, Lanxess bought the manufacturing assets of Indian company Gwalior Chemical Industries Ltd. for €82.4 million and also acquired the production facilities and businesses of Jiangsu Polyols Chemical Co. Ltd. in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
for an undisclosed figure.
Business segments
The Performance Polymers Segment includes four business units dedicated to the production, respectively, of Butyl RubberButyl rubber
Butyl rubber is a synthetic rubber, a copolymer of isobutylene with isoprene. The abbreviation IIR stands for Isobutylene Isoprene Rubber. Polyisobutylene, also known as "PIB" or polyisobutene, n, is the homopolymer of isobutylene, or 2-methyl-1-propene, on which butyl rubber is based...
, Performance Butadiene Rubbers, Semi-Crystalline Products (i.e., plastics) and Technical Rubber Products. Lanxess is one of the leading producers of synthetic rubber in the world, and the segment’s products are used in automotive tires, belts, hoses, shoe soles and a wide variety of other items.
The Advanced Intermediates Segment consists of two business units – Basic Chemicals and Saltigo – whose product lines include aromatic compounds, benzyl
Benzyl
In organic chemistry, benzyl is the term used to describe the substituent or molecular fragment possessing the structure C6H5CH2-. Benzyl features a benzene ring attached to a CH2 group.-Nomenclature:...
s, amines, hydrazine hydrate
Hydrazine
Hydrazine is an inorganic compound with the formula N2H4. It is a colourless flammable liquid with an ammonia-like odor. Hydrazine is highly toxic and dangerously unstable unless handled in solution. Approximately 260,000 tons are manufactured annually...
, and other chemical compounds used in agriculture, pigments, automotive parts, construction materials and other industry sectors.
The Performance Chemicals Segment includes business units dedicated to Functional Chemicals, Inorganic Pigments, Ion Exchange Resins, Leather
Leather
Leather is a durable and flexible material created via the tanning of putrescible animal rawhide and skin, primarily cattlehide. It can be produced through different manufacturing processes, ranging from cottage industry to heavy industry.-Forms:...
, Material Protection Products and Rubber Chemicals. Lanxess’ Rhein Chemie subsidiary, which produces customized compounds for the rubber, lubricant and plastics industries, is also grouped in this segment.