Source: CPRJ China Plastic & Rubber | Author: pleased | Release date :2013-11-18

Faced with the current uncertain economic environment, the specialty chemicals group LANXESS clarify its 2013 full-year performance targets: profit before exceptionals interest, taxes, depreciation and amortization of between 710 million euros and 760 million euros, in line with prior expected between EUR 700-800 million.

Lanxess 2013 sales growth of 9% in the third quarter. However, the growth in sales and selling prices did not fully offset the losses brought about by 11%. Caused by a decline in sales prices of raw materials prices fell. Performance Polymers segment is part of the business of selling rubber prices fell particularly evident. In addition, earnings have been negatively affected exchange rates, primarily the weak dollar. Groups total sales compared to last year decreased by 5% to 2.1 billion euros.

"Three quarters of the year and sequential sales growth have emerged, showing some of our customers have started again to increase inventory," said LANXESS Management Board Chairman Axel C. Heitmann said. "But, in our opinion, when it comes to the overall recovery of the business is still too early."

Greater China sales in the third quarter compared to last year jumped 21.3 percent, reaching 260 million euros. Removal of exchange rate effects and changes in product mix, sales in China during the reporting period, an increase of 24.7%. "Three quarters of Chinas performance is very positive, thanks to the rising trend of Chinas tire industry. Performance Polymers segment contributed to double-digit sales growth Zhang," CEO of Lanxess China region, said Qian Ming Cheng .

"Facts have proved that China is the cornerstone of the companys growth strategy, we will continue to invest in China to prepare for further growth in the future." Qian Ming Cheng added. Lanxess recent investment projects in China are being constructed in Changzhou City, Jiangsu Province, a world-class EPDM manufacturing plant. The plant will reach an annual capacity of 160,000 metric tons and is scheduled to complete construction before the end of 2014, and began selling products to customers in 2015. EPDM rubber in the automotive industry, construction industry and the electronics industry, which are widely used.

Lanxess expect the market environment remains challenging, particularly in the automotive and tire industries. The remaining months of 2013, the automobile production may be only a slight increase was mainly driven by the United States and Chinas market demand. Tire industry may see only a modest recovery.

LANXESS is a leading global supplier of specialty chemicals, in 2012 total sales of 9.1 billion euros, has about 17,500 employees worldwide, distributed in 52 production bases in 31 countries. Core business of LANXESS is the development, production and marketing of plastics, rubber, intermediates and specialty chemicals.