Lanxess and Saudi Aramco have completed the formation of the companies’ previously announced 50-50 synthetic rubber joint venture, Arlanxeo (Maastricht, Netherlands).
The deal was announced in September 2015 and the jv had received all relevant antitrust approvals by February 2016.
Aramco effectively acquired a 50% stake in Lanxess’s synthetic rubber business, to create Arlanxeo. A 50% share of the jv has been transferred to a Dutch subsidiary of Aramco. Lanxess, in return, has received cash proceeds of about €1.2 billion.
Lanxess says it plans to invest about €400 million of the proceeds from the transaction in organic growth, use €400 million of the proceeds to repay debt, and spend about €200 million on a share buyback program. Forming the jv marks Aramco’s entry into the synthetic rubber industry.
Lanxess chairman Matthias Zachert chairs Arlanxeo’s sharehoders’ committee and Warren Wilder, v.p./chemicals at Aramco is vice chairman of the shareholders’ committee. The committee has two other members. Lanxess and Aramco announced Arlanxeo’s executive team last month.
Arlanxeo is expected to have sales of about €3 billion/year.
By Ian Young
Source: Chemical Week
The total contract value is approximately €430 million. The project scope of work entails complete engineering services, equipment and material supply, installation and construction activities and, as an optional part of the scope, commissioning and start up.
Once it has implemented this project, Lenzing will have biological wastewater treatment plants that meet the best available techniques (BAT) quality standard at all its production sites.
The debate over the position of hydrogen in the new energy revolution has come to the fore again thanks to Japan’s hosting of the Olympic Games. But rather than showcasing how green this miracle new fuel is, it has highlighted its many problems.