Sector News

Germany’s LANXESS agrees to sell chrome chemicals business

August 15, 2019
Chemical Value Chain

Germany-based speciality chemical company LANXESS has agreed to sell its chrome chemicals business to Chinese leather chemicals manufacturer Brother Enterprises.

The companies have signed an agreement with the transaction depending on the approval by the relevant anti-trust authorities.

LANXESS management board chairman Matthias Zachert said: “We have successfully reorganised our chrome chemicals business in recent years. However, it no longer fits in with our strategic focus on speciality chemicals.

“We are therefore convinced that future growth and the further development of the business can be better implemented under the leadership of Brother Enterprises.”

LANXESS’ Leather unit owns the chrome chemicals business, which annually generates around €100m in sales.

The company owns two sites in South Africa. The Newcastle site manufactures sodium dichromate (Na₂Cr₂O₇), which is partially processed into chromic acid.

The Merebank site produces chrome tanning salts from sodium dichromate. The salts are used in the chrome tanning process for leather.

Under the transaction, Brother Enterprises will acquire the Newcastle plant that employs 220 people.

In addition, LANXESS will manufacture chrome tanning salts for Brother Enterprises until 2024.

The deal is expected to close by the end of this year.

LANXESS reported sales of €7.2bn in 2018. With 15,400 employees in 33 countries, the company has 60 production sites worldwide.

Source: Chemicals Technology

comments closed

Related News

December 3, 2022

Corteva to acquire Stoller Group for $1.2 billion

Chemical Value Chain

Corteva (Indianapolis, Indiana) says it has signed a definitive agreement to acquire Stoller Group (Houston, Texas), a producer of biostimulants and plant nutrition products, for $1.2 billion. Stoller is one of the largest independent biologicals companies globally, with operations in more than 60 countries and more than $400 million in annual sales.

December 3, 2022

OMV introduces new corporate structure to drive sustainable growth and innovation

Chemical Value Chain

OMV has announced its new corporate structure today, designed to fully enable the delivery of Strategy 2030. The new organization will be built on five distinct areas. In addition to the CEO and CFO areas, three business segments will be established: Chemicals & Materials, Fuels & Feedstock, and Energy.

December 3, 2022

What does the current downturn in industrial manufacturing mean for executives searching for a senior role in the chemicals industry?

Chemical Value Chain

The European petchem sector is readying for some tough quarters. It’s a different picture in the US. So is this the best time ever to find a new role in the chemical industry? If you are in Europe, you would expect me to say probably not. But actually, it depends. So let me give you four answers to this question.