Lanxess Hands Rubber JV to Aramco
At the end of 2018, German chemical producer Lanxess exited its legacy synthetic rubber business, completing the sale of its 50% share in the joint venture Arlanxeo to partner Saudi Aramco for €1.4 billion.
Lanxess said earlier it plans to use the proceeds to strengthens its financial base and significantly reduce its net financial liabilities.
As part of a strategic realignment under CEO Matthias Zachert, the German company carved out of Bayer in 2004 began its withdrawal from the commodity business on Apr. 1, 2016, when it established the jv with Aramco.
Headquartered in Maastricht, the Netherlands, Arlanxeo, which employs about 3,800 people at 20 production sites in nine countries, generated sales of around €3.2 billion in 2017.