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LANXESS to save EUR 10 million in Spain

Published on 2005-09-20. Author : SpecialChem

Barcelona -- LANXESS plans to save a total of EUR 10 million annually in Spain starting in 2006. This was announced by Dr. Axel Heitmann, Management Board Chairman of Lanxess AG, at a news conference in Barcelona. "The agreement reached yesterday with the union representatives makes our rigorous cost-saving program in Spain complete", said Heitmann. After weeks of negotiations, the Spanish unions have agreed to the measures requested by LANXESS management. LANXESS employs approximately 350 people in Spain, most of them at the Tarragona production site operated by the Styrenic Resins (STY) business unit.

The principal elements of the agreement are:

  • flexibilization of worktime models.
  • for employees covered by the collective agreement, an increase of 24 hours in annual worktime to the legally permitted level of 1,752 hours.
  • a reduction in the collectively agreed annual payment to offset inflation.
  • for all managerial staff, a reduction of 1-3 percent in the annual bonus.

The other elements of the cost-saving program are savings on utilities, supplies, local raw material purchases and infrastructure. Heitmann also announced that the European management and the marketing department of the Styrenic Resins business unit will be transferred from Leverkusen to Tarragona. "Locating regional management, marketing and production at a single site is essential to manage this business efficiently," Heitmann explained.

In June this year, following a comparative assessment of the Styrenic Resins sites in Tarragona and Dormagen, LANXESS announced that the business unit's European manufacturing operations will in future be concentrated in Tarragona. The company will initially invest EUR 16 million to expand production capacities at that site.

The Dormagen site will in future operate at reduced capacity, confining itself to the manufacture of high-grade styrenic resins for Bayer MaterialScience, a subgroup of Bayer AG. To implement this capacity reduction, LANXESS reached agreement in June 2005 with the employee representatives on the socially responsible elimination of some 300 positions at the German facility.

Forward-Looking Statements

This news release contains forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Source: LANXESS


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