Sector News

LANXESS to streamline the chrome value chain of its leather business

June 21, 2017
Chemical Value Chain

As one of the world’s leading suppliers of leather chemicals and chrome specialties, specialty chemicals company LANXESS is to further strengthen the competitiveness of its leather chemicals business.

The core element is a shift from the international chrome value chain to centralization in South Africa, where chrome ore is processed into the intermediate sodium dichromate and ultimately to chrome specialties, predominantly chrome tanning salts for use in tanneries worldwide. In this context the company will discontinue production at the Zárate site in Argentina in the fourth quarter of 2017. LANXESS currently operates production facilities for sodium dichromate and chrome tanning salts in both countries: in Argentina at its site in Zárate, and in South Africa at its sites in Newcastle and Merebank.

“This strategic measure enables us to further strengthen our competitiveness in the chrome chemicals business. Moreover, it allows us to focus even more on our business with organic leather chemicals and thus bolster our leading position as a provider of innovative, service-intensive specialties for the leather production,” says Luis López-Remón, head of the LANXESS leather business unit. LANXESS expects the streamlining of its chrome value chain to generate a positive EBITDA effect of around EUR 10 million annually, which will be realized by the end of 2018, as well as approximately EUR 60 million in one-time-costs in 2017.

The site closure in Zárate, Argentina, will affect 170 employees. “It is our intention to enter into talks with employee representatives without delay in order to find responsible solutions for all affected employees,” explains López-Remón.

LANXESS will continue its other operations in Argentina at its production sites in Burzaco and Merlo (Province of San Luis), from where the company offers comprehensive solutions for the rubber industry. LANXESS currently has some 400 employees in Argentina.

Source: LANXESS

comments closed

Related News

May 15, 2022

New York’s EPR and packaging reduction bills lauded as game-changers in plastic pollution battle

Chemical Value Chain

The US State of New York is introducing two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility (EPR) program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.

May 15, 2022

Borealis and Reclay launch entity focused on lightweight packaging 

Chemical Value Chain

The new organization’s mission is to redesign the critical steps of the plastics sorting and recycling system for post-consumer lightweight packaging (LWP) to speed up circularity, born from a need to meet the rising market demand for high-quality recyclates for use in high-end plastic applications.

May 15, 2022

Starbucks and Hubbub launch reusable packaging fund as COVID-19 diminishes consumer appetite

Chemical Value Chain

Starbucks and Hubbub have launched a £1 million (US$1.22 million) “Bring It Back Fund” to increase the uptake of reusable packaging in the F&B industry. The funding will go toward innovative ideas that make it easier for customers to use alternatives to single-use packaging by supporting pilot projects that help shift consumption habits.