Lanxess to move away from Synthetic rubber business.
Arlanxeo the joint venture between Lanxess and Saudi Aramco is soon going to be moving ahead without Lanxess.Saudi Aramco is buying the 50 % stake held by Lanxess for US$ 1.6 billion.
Arlanxeo was established in 2016 between these two companies , however Lanxess has made a strategic decision to move ahead with a focus on speciality chemicals.
The sale is expected to be finalised within 2018 subject to regulatory approvals.
Lanxess plans to use the funds from this to reduce the debt leverage which should result in an improvement in its financial position.
Mr.Matthias Zachert, chairman of Lanxess board envisages that the company would
complete another important milestone of its strategic transformation earlier than originally planned.This should laxness to improve the focus on its position as a leading player in mid-sized specialty chemicals markets.
Arlanxeo with its headquarters in Maastricht, Netherlands, generated sales revenues of around €3.2 billion ($3.7 billion) in 2017 with an employee strength of about 3,800 people at 20 production sites in 9 countries.