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LANXESS strengthens North American asset base

Investment plans of USD 580 million until 2022

Pittsburgh, PA – July 19, 2018 – Specialty chemicals company LANXESS is strengthening its presence in the growth market of North America with a comprehensive investment program. The company plans to invest up to USD 580 million in its asset base there till 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. Now we plan to upgrade our asset base there in order to leverage on its full potential,” said Matthias Zachert, Chairman of the Board of Management of LANXESS during a U.S. visit.


More than USD 100 million of the total amount will be already spent in 2018, thereof some USD 50 million at the company’s largest U.S. site in El Dorado, mainly to upgrade the bromine brine exploration network, as well as the site infrastructure and pipelines.


El Dorado is the backbone of LANXESS’ highly integrated value chain for brominated products. At the site LANXESS currently employs approximately 600 people.


Strong performance in the U.S. market


The enlarged footprint is already reflected in very strong performance of LANXESS in the U.S. In 2017, the company’s total U.S. sales have increased by some 40 percent from USD 1.4 billion to 1.9 billion, the highest number in the company’s history. LANXESS also had a strong start into 2018: In the first quarter, U.S. sales increased by around 17 percent to USD 525 million from USD 450 million.


A major step on the growth path in North America was the acquisition of chemicals group Chemtura in 2017. With the takeover LANXESS has significantly strengthened its competitive position in the area of lubricant additives and synthetic lubricants for industrial applications.


In February 2018, LANXESS took a further step to grow its additives business in North America by purchasing the phosphorus chemicals business from Belgian chemicals group Solvay including its U.S. production site in Charleston, South Carolina.


North American footprint almost doubled


With the acquisitions, LANXESS has significantly expanded its platform in North America. The number of production sites as well as the number of employees have roughly doubled. LANXESS now has 24 production sites and employs some 2,800 staff in North America – thereof 19 production sites and 2,200 employees in the U.S.



LANXESS is a leading specialty chemicals company with sales of EUR 9.7 billion in 2017 and about 19,200 employees in 25 countries. The company is currently represented at 74 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through ARLANXEO, the joint venture with Saudi Aramco, LANXESS is also a leading supplier of synthetic rubber. LANXESS is listed in the leading sustainability indices Dow Jones Sustainability Index (DJSI World and Europe) and FTSE4Good.


Forward-Looking Statements
This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accept any liability whatsoever arising directly or indirectly from the use of this document.


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