Home / Knowledge / News / Textiles / LANXESS finalizes global package to counter crisis
LANXESS finalizes global package to counter crisis
Jan '09
LANXESS AG has put together a global package of measures named “CHALLENGE 09” in order to mitigate the effects of weak demand worldwide and strengthen the specialty chemicals group's position. This package includes a number of technical process improvements as well as measures affecting personnel.

“We are in the midst of a global recession,” said LANXESS Chairman of the Board of Management Axel C. Heitmann. “Customer demand, especially in the automobile & construction industries, remained weak in January and we do not expect the current economic environment to radically improve going forward.”

After holding negotiations with employee representatives and the IG BCE (the German Mining, Chemical and Energy Industry Union), the following was agreed upon for around 5,000 German non-managerial employees in 2009:
• Introduction of a 35-hour working week with a corresponding remuneration decrease as of March 2009 for initially 12 months
• No bonus for the business year 2009

This result is still conditional upon approval from the respective parties involved.

The following measures for the business year 2009 are envisaged for LANXESS's Board of Management as well as managerial employees in Germany:
• Reduction in variable salary of LANXESS AG Board of Management amounting to 10% of fixed salary
• For managerial employees the variable salaries will be adjusted and their annual fixed salary reviews for 2009 will be postponed by at least six months.

If economic conditions worsen in the coming months, senior management and employee representatives will meet on a regular basis to discuss further measures.

Salary reviews worldwide will also be postponed by at least six months. In some countries, salary increases will be postponed by twelve months. In addition, measures to lower personnel costs will be agreed upon according to the respective country conditions.

Through these measures, which are initially intended for the next twelve months, the company will lower its cash outs by roughly 50 million Euros over the period 2009/2010.

“LANXESS has the expertise to cope with difficult economic conditions. We have already demonstrated our competence in the recent past with the realignment of our company. I am impressed by the commitment and the flexibility of our employees worldwide,” said Heitmann. “We will continue to increase efficiency and focus on innovative technologies as well as products for our customers. Therefore, I believe LANXESS can emerge strengthened from the crisis.”

LANXESS is a leader in specialty chemicals with sales in 2007 of EUR 6.61 billion and currently around 15,000 employees in 21 countries. The company is represented at 44 production sites worldwide. The core business of LANXESS is the development, manufacture and sale of plastics, rubber, intermediates and specialty chemicals.


Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search