Lanxess to buy DSM elastomers business

In a move designed to improve its production technology for synthetic rubber ethylene propylene diene monomer (EPDM), specialty chemical supplier Lanxess AG has agreed to buy the elastomers business from Royal DSM NV for US$415 million.

Lanxess said it stands to gain technology that could cut the energy and production costs of its existing plants, while gaining facilities in Brazil and the Netherlands.

Synthetic rubber EPDMs are used for products such as door seals and windshield wipers.

“We look forward to welcoming DSM’s professional EPDM team as well as its impressive assets to our core synthetic rubber activities,” said Axel C. Heitmann, CEO of Lanxess, in a press statement. “The transaction will also be an important step towards our goal of achieving roughly EUR 1.4 billion EBITDA pre exceptionals in 2015.”