lanxess to close us inorganic pigment, rubber additive plants

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Colour iMatch Online Edition is part of the GretagMacbeth Enterprise Colour Management (ECM) solution, which aims to increase speed to market through effective supply chain colour management. Its components include: ECM Communicate, ECM Measure and Control, and ECM Compliance. ECM Communicate pro- vides a suite of web-based software applications that speed timely colour communication and collaboration. ECM Measure and Control focus on software for measuring and controlling colour, while ECM Comply includes auditing and managed services for supply chain colour management. In other company news, GretagMacbeth has recently opened a new office in Moscow, Russia, to serve the growing colour control needs of existing customers and emerging busi- ness opportunities within the Commonwealth of Independent States (CIS). The office, under the business leadership of Peter Simmen, will include sales, service and application support. It is located in the InterPartner Business Center in Moscow. In addition to several Fortune 100 and Fortune 500 multinational customers in the region, the company has an exclusive laboratory at the Moscow State University of Printing Industry as well as representation at the Design and Textile Institute in St Petersburg. Contact: GretagMacbeth LLC, 617 Little Britain Rd, New Windsor, NY 12553, USA; tel: +1-845-565-7660; fax: +1-845-565-0390; URL: www.gretagmacbeth.com COMPANY STRATEGIES Lanxess to close US inorganic pigment, rubber additive plants US-based Lanxess Corp, part of Germany’s Lanxess group, is to take a number of initiatives to improve its US business units. One initiative involves the curtailment of production at its inorganic yellow pigments facility in New Martinsville, WV, another the closure of a Rhein Chemie plant. These measures are part of the group’s global restructuring efforts to improve competitiveness and profitability following its spin-off in early 2005 from the Bayer Group [ADPO, January 2005]. Restructuring is already underway in Europe and is reported to be prov- ing effective in improving the company’s finan- cial footing. Lanxess says that despite significant invest- ment in the New Martinsville facility since 1998, it has been unable to achieve the prof- itability necessary to keep the plant open. The US market has been impacted in particular by the competitive market situation and steep increases in natural gas and caustic soda prices, the company says. The manufacturing plant closure is expected to be complete by mid-2006, affecting 42 employees working in the unit, of whom 11 are Lanxess and the remainder Bayer MaterialScience LLC employees. According to Kim O’Connor, VP of Lanxess’ Inorganic Pigments business in North America, the step is necessary to ensure the long-term via- bility of the company’s inorganic pigment busi- ness in the USA. “We believe that we have a strong future under the right cost structure and facilities,” O’Connor adds. The company says there should be no disruption of service for cus- tomers throughout the closure process as 85% of its US inorganic pigment business is presently sourced from its other global manufacturing units. Lanxess’ announced US restructuring plan also includes closures for additive maker Rhein Chemie’s site in Trenton, NJ, and a textile pro- cessing chemicals plant in Wellford, SC. Expanding and upgrading the Trenton plant, which has been operating below capacity for years, is seen as cost prohibitive. The plant will therefore be closed at the end of 2006, affecting 76 employees, though warehousing at the site will be retained. Lanxess Corp, which began operating as a legal entity in the USA in July last year, employs about 2100 people. It currently has 15 sites, ten of which house production facilities. US sales account for about 20% of the Lanxess group total. Contact: Lanxess Corp, 111 RIDC Park West Drive, Pittsburgh, PA 15275-1112, USA; URL: www.us.lanxess.com Additives for Polymers October 2005 4

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Colour iMatch Online Edition is part of theGretagMacbeth Enterprise Colour Management(ECM) solution, which aims to increase speedto market through effective supply chain colourmanagement. Its components include: ECMCommunicate, ECM Measure and Control, andECM Compliance. ECM Communicate pro-vides a suite of web-based software applicationsthat speed timely colour communication andcollaboration. ECM Measure and Control focuson software for measuring and controllingcolour, while ECM Comply includes auditingand managed services for supply chain colourmanagement.

In other company news, GretagMacbeth hasrecently opened a new office in Moscow,Russia, to serve the growing colour controlneeds of existing customers and emerging busi-ness opportunities within the Commonwealth ofIndependent States (CIS). The office, under thebusiness leadership of Peter Simmen, willinclude sales, service and application support. Itis located in the InterPartner Business Center inMoscow. In addition to several Fortune 100 andFortune 500 multinational customers in theregion, the company has an exclusive laboratoryat the Moscow State University of PrintingIndustry as well as representation at the Designand Textile Institute in St Petersburg.

Contact: GretagMacbeth LLC, 617 LittleBritain Rd, New Windsor, NY 12553, USA; tel:+1-845-565-7660; fax: +1-845-565-0390;URL: www.gretagmacbeth.com

COMPANY STRATEGIES

Lanxess to close US inorganicpigment, rubber additive plantsUS-based Lanxess Corp, part of Germany’sLanxess group, is to take a number of initiativesto improve its US business units. One initiativeinvolves the curtailment of production at itsinorganic yellow pigments facility in NewMartinsville, WV, another the closure of a RheinChemie plant. These measures are part of thegroup’s global restructuring efforts to improvecompetitiveness and profitability following itsspin-off in early 2005 from the Bayer Group

[ADPO, January 2005]. Restructuring is alreadyunderway in Europe and is reported to be prov-ing effective in improving the company’s finan-cial footing.

Lanxess says that despite significant invest-ment in the New Martinsville facility since1998, it has been unable to achieve the prof-itability necessary to keep the plant open. TheUS market has been impacted in particular bythe competitive market situation and steepincreases in natural gas and caustic sodaprices, the company says. The manufacturingplant closure is expected to be complete bymid-2006, affecting 42 employees working inthe unit, of whom 11 are Lanxess and theremainder Bayer MaterialScience LLCemployees.

According to Kim O’Connor, VP of Lanxess’Inorganic Pigments business in North America,the step is necessary to ensure the long-term via-bility of the company’s inorganic pigment busi-ness in the USA. “We believe that we have astrong future under the right cost structure andfacilities,” O’Connor adds. The company saysthere should be no disruption of service for cus-tomers throughout the closure process as 85% ofits US inorganic pigment business is presentlysourced from its other global manufacturingunits.

Lanxess’ announced US restructuring plan alsoincludes closures for additive maker RheinChemie’s site in Trenton, NJ, and a textile pro-cessing chemicals plant in Wellford, SC.Expanding and upgrading the Trenton plant,which has been operating below capacity foryears, is seen as cost prohibitive. The plant willtherefore be closed at the end of 2006, affecting76 employees, though warehousing at the sitewill be retained.

Lanxess Corp, which began operating as a legalentity in the USA in July last year, employs about2100 people. It currently has 15 sites, ten of whichhouse production facilities. US sales account forabout 20% of the Lanxess group total.

Contact: Lanxess Corp, 111 RIDC Park WestDrive, Pittsburgh, PA 15275-1112, USA; URL:www.us.lanxess.com

Additives for Polymers October 2005

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