Interim Report Q1 2007

Highlights

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+++ 1st quarter 2007 +++ 1st quarter 2007 +

January 25

+++ LANXESS expands polyamide facility in Krefeld-Uerdingen +++

The Semi-Crystalline Products (SCP) business unit has created additional production capacity for its base material polyamide 6 by expanding an existing production line at the important Krefeld-Uerdingen site to include additional compounding steps. Enlarging the production facility has paved the way for making the Uerdingen site competitive and ensuring that the high-tech plastic Durethan® continues to be manufactured to strict quality standards in the future.

February 1

+++ First acquisition successfully completed +++

LANXESS has completed the acquisition of the chrome chemicals business of the Dow Chemical group in South Africa. The transaction became legally and economically effective as of February 1, 2007. This first-ever acquisition by LANXESS further improves the profitability of the Leather business unit’s chrome chemicals activities.

February 15

+++ LANXESS steps up expansion in India +++

The Rhein Chemie business unit has brought on stream a new plant for the production of the polymer-bound rubber chemical Rhenogran® in Madurai in response to the rapidly growing demand from Indian tire manufacturers and other rubber processors. At the same time, the construction of a new facility in Moxi for coloring ABS plastics is proceeding on schedule.

March 2

+++ New technology center inaugurated in Pittsburgh +++

The North American laboratories of the Technical Rubber Products, Material Protection Products and Functional Chemicals business units will be combined in this new center, in which US$ 5 million is being invested. It offers a broad spectrum of the latest technical equipment and processes for developing customer-specific applications.

March 5

+++ LANXESS invests in new site in China +++

LANXESS is systematically expanding its presence in China. An example is the new plant for the manufacture of lubricant additives to be built at Qingdao, China. The production facility, which belongs to LANXESS’s Rhein Chemie business unit, is planned go on stream in the fourth quarter of 2008 at the latest and will initially employ 50 people.