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
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?
