In view of constantly rising energy and raw material costs, specialty chemicals group LANXESS AG is to launch an efficiency program for its Canadian site in Sarnia.
The prime aim of this is to further streamline the service areas for butyl rubber production and to shut down the NBR plant. Some 270 positions will be lost in the process.
Around one third of the jobs to be cut will result from the closure of a plant for the production of technical rubber (NBR). NBR production will be taken over by the French site of La Wantzenau.
According to provisional calculations, the savings that will be reflected in earnings from 2009 will amount to a mid single-digit million figure. Already in 2008 it is expected that one-time costs of up to EUR 20 million will be realized.
"Because of the constantly rising energy and raw material costs in Canada, there is no alternative to this efficiency program," said Werner Breuers, a member of the LANXESS Board of Management.
“As is customary at LANXESS, we will work with the employee representatives to try to find acceptable solutions for the employees affected."
To improve Sarnia's competitive position, LANXESS began work in 2006 on expanding its butyl rubber production. The second expansion stage is currently under way.
Until 2010 LANXESS plans to increase its total worldwide butyl rubber capacity to 280,000 metric tons per year. LANXESS has so far invested around EUR 75 million in its worldwide butyl rubber production.
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