Lanxess plans to invest $580 million in North American operations
Lanxess’ decision to bolster its North American footprint comes after its 2017 acquisition of chemicals group Chemtura and its purchase of Solvay’s phosphorous chemicals business in 2018.
July 25, 2018 by Canadian Plastics
Germany-based specialty chemical supplier Lanxess has announced plans to invest US$580 million to strengthen its presence in North America between now and 2022.
“North America and in particular the U.S. is a key growth market for Lanxess, where we have enlarged our footprint significantly with our recent acquisitions,” Matthias Zachert, Chairman of the Board of Management of Lanxess, said in a statement. “Now we plan to upgrade our asset base there in order to leverage on its full potential.”
The firm said it has already invested US$100 million in 2018, with US$50 million going toward upgrades at the Lanxess site in El Dorado, Arkansas, in the U.S., including improvements to the site’s bromine brine exploration network, infrastructure, and pipelines. The El Dorado site employs approximately 600 people.
Lanxess’ decision to bolster its North American footprint comes after the firm’s 2017 acquisition of chemicals group Chemtura and its purchase of Belgian chemical group Solvay’s phosphorous chemicals business in February 2018. Under the terms of the transaction with Solvay, Lanxess also acquired a production site in Charleston, S.C.
With these transactions, Lanxess now operates 24 production facilities in North America.