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    LANXESS Brazil Leather Chemicals Business Department Grows The Strongest

    2008/4/19 0:00:00 10378

    Leatherwear

    Lanxon, the world's leading specialty chemicals group, has announced that it has successfully acquired about 70% of Petroflex shares and has paid about 200 million euros for the equity paction. Petroflex is the largest rubber manufacturer in Latin America.

    Since April 1, 2008, the takeover Treaty of this paction has officially entered into force legally and economically.

    Starting from the second quarter of 2008, Brazil Petroflex will merge its financial statements with LANXESS.

    According to local practices in Brazil, LANXESS will make a public offer for the company's remaining shares in the near future.

    Dr AxelC.Heitmann, chairman of management board of lanxon, said: "the acquisition of Petroflex not only further improves our product line, but also effectively consolidates our advantageous position in Brazil's most important fast-growing market in the world.

    Through this acquisition, we have effectively consolidated the position of the company in the Latin American market.

    Lanxon welcomes the entry of employees from Petroflex, and we will work with them to achieve sustained growth of the company.

    Mr. JoergSchneider from lanxon will be Petroflex's CEO.

    He worked for many years in LANXESS Brazil company, and served several positions. He was appointed senior position in the rubber chemicals business department before CEO.

    Dr. JoachimGrub, head of the br Business Department of LANXESS company and Mr. MarceloLacerda, head of LANXESS Brazil company, will join the company's board of directors on behalf of LANXESS, and the board will also have a minority shareholder representative.

    In 2007, Brazil Petroflex's sales amounted to about 535 million euros, with 1300 employees, of whom 600 belonged to Petroflex.

    The company is located in the three major bases of Cabo in burnan, Burke, Brazil, Rio De Janeiro, and Triunfo in South Rio Grande, Dezhou. The total output is about 400 thousand tons.

    Its synthetic rubber products cover 70 products from glue to latex.

    These products are mainly used for tire manufacturing. In addition, they can be applied to other fields together with hose and plastic products.

    Nearly 1/3 of the company's products are exported to more than 70 countries around the world.

    At present, the number of employees of LANXESS company in Brazil is about 400, distributed in three parts of St Paul (S oPaulo), PortoFeliz and San Leo Bordeaux (S oLeopoldo).

    With the completion of the majority acquisition of Petroflex, LANXESS will have more than 1700 employees in Brazil, which are distributed in 7 production bases.

    In terms of sales and staff size, lanxon will become one of the leading special chemicals companies in Brazil.

    Since its independent operation in January 2005, LANXESS has achieved rapid growth in Brazil.

    In 2007, lanxon's sales in Brazil amounted to 145 million euros after deducting the business adjustment factors.

    With the completion of this acquisition, Brazil will become the second largest market for LANXESS in the Americas, next to the United States.

    At present, Lanxin's 13 business departments in Brazil are developing with gratifying development, among which leather chemicals and inorganic pigment business are growing most vigorously.

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