LANXESS Business Continued To Move Forward In 2008.

In the 2007 fiscal year, the world's leading special chemicals group LANXESS sales revenue in China maintained a strong growth of up to two digits, excluding the influence of product line adjustment and exchange rate factors, China's market sales grew by 23.4%.

With the continuous progress of the strategy of "LANXESS marching into Asia", lanxon company continued to invest in the business in China in the 2007 fiscal year. In 2007, the new R & D test center and second engineering plastics production lines of Lansheng semicrystal products business department were built in Wuxi. The first production joint venture 6PPD production plant of rubber chemicals was officially put into operation in China. The inorganic pigment business department was also formally put into operation in Shanghai Jinshan new factory, which ensured that the Shanghai grinding and mixing plant could get high-quality and cost-effective raw material supply.

In the 2007 fiscal year, Lansheng semicrystal product business department, functional chemicals business department, industrial rubber product and Br business department all performed well in the Chinese market, and made contributions to Lanxun's development in China.

Global profitability improved

From a global perspective, LANXESS Group continued to substantially raise the overall profit level in fiscal year 2007, and the profit before tax and depreciation in the conventional business increased by 6.5% to 719 million euros.

Dr AxelC.Heitmann, chairman of the board of directors of lanxon, said: "good income indicates that the business situation of LANXESS has been completely improved.

The profitability of LANXESS in 2007 has been more closely related to its industry competitors.

As far as the business sectors are concerned, the high performance polymer business has successfully integrated lanxon's business in the fields of synthetic rubber and plastics manufacturing, and the two business units of butyl rubber and semicrystal products have increased the additional capacity, and some of them have been pferred out of the influence caused by the sharp rise in raw material costs. The sales volume of the business sector has increased by 4.2% to 2 billion 680 million euros.

The products of the two major business divisions of the high quality intermediates business segment, including the basic chemicals and Saltigo, were strong in 2007. The sales volume of the business segment increased by 5.6% to 1 billion 200 million euros.

The high performance chemicals business sector benefited from a substantial increase in product line adjustment revenues.

The favorable market environment of the Asia Pacific market has benefited a lot from leather chemicals business and Rhine chemistry.

The growth of sales of inorganic pigment business in Europe, Middle East and Africa has offset the decline in the market demand of the construction industry in the United States.

Business outlook for 2008: continue to move forward

Dr He Deman said: "the company's expected goal in 2008 is to further achieve enterprise growth on the basis of increasing competitiveness."

To this end, Lanxun is about to complete the acquisition of a majority stake in Brazil Petroflex company, which will help to achieve the company's development goals.

In view of the uncertainty of the impact of the US subprime loan crisis, Lansheng predicts that the economic growth rate of each business area will be different. The impact of the US economic downturn is expected to be offset by the growth trend of the industry in Asia, Latin America and Eastern Europe, and Asia is the top priority for growth.

At present, the company is implementing a number of plans to promote enterprise growth. The total investment of these schemes is as high as 800 million euros.

At present, lanxon is actively working to improve its sales volume in 2008 and the profit margins before and after depreciation.