LANXESS announced that the company will adjust its organic metal business, expand its production of aluminum-based metal organic compounds, and sell its tin-based metal organic compounds business. The company will first invest millions of euros in its base in Bergkamen, Germany, to increase the production of aluminum-based metal organic compounds used in plastics production catalysts. At the same time, LANXESS signed an agreement with the US chemical company PMC Group to sell the tin-based metal organic compound business produced at its Bergkamen base to the PMC Group. The entire transaction is expected to be completed by the end of 2019, and neither party disclosed Purchase price. Tin-based organometallic compounds are mainly used in the production of polyvinyl chloride, and can also be used as a catalyst and in other chemical intermediates.
Organometallic is part of the LANXESS high-quality industrial intermediates business unit, which is a business unit with outstanding earnings growth potential. According to the third quarter 2019 financial report just released by LANXESS, the high-quality intermediate business segment performed well in the third quarter. Despite the further decline in raw material prices, sales in this business segment amounted to 549 million euros, an increase of 2.8% from the 534 million euros in the same period last year. Within the scope of regular business, profit before interest, tax, depreciation and amortization also increased from 87 million euros to 89 million euros, an increase of 2.3%. Therefore, LANXESS decided to adjust the focus of the business.
Feng Hubo, a member of the management board of the LANXESS Group, said: "With adjustments, LANXESS’ organic metal business will be more stable and profitable. At the same time, LANXESS believes that tin-based metal organic compounds business will be realized in the hands of new owners Better development."
LANXESS stated that the adjustment to the organic metal business is a reflection of its robust market positioning strategy. This helps LANXESS to ensure income in a volatile market environment. According to the third-quarter financial report of LANXESS, LANXESS ’s performance is still stable under the further weakening of the economic environment, and its revenue has only declined slightly compared with the same period last year. The impact of declining demand and weak chrome ore business has been basically offset by the company's stable product portfolio and favorable exchange rate effects. Chang Mutian said: "LANXESS's stable positioning strategy proves that it can keep on track during the economic turmoil. Although the environment is still full of challenges, LANXESS is still confident in achieving the expected goals for the whole year." Adjustment, LANXESS will further optimize the product mix and help companies achieve business goals.