LANXESS'S Return To Growth Track

Germany's special chemicals company Lanxun released its 2015 global earnings report.

According to the data, the profit before the tax breaks and amortization of Lansheng regular business increased by 9.5%, up to 885 million euros.

It maintained a stable trend of 7 billion 900 million euros, but the net profit increased by 251% to 165 million euros, and net financial liabilities reduced by 125 million euros to 1 billion 200 million euros, thanks to the exchange earnings from the dollar and the strong dollar.

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The 2015 fiscal year has been a successful year in all respects.

The progress of the adjustment plan is faster than expected.

At the same time, the company's profits and financial conditions have improved significantly.

We have laid a solid foundation for the road of growth in the future.

Chang Mutian, chairman of management board of Lanxun group, said.

In the past year, global chemical market demand is weak, production capacity is relatively surplus, the overall industry situation is not optimistic, and urgent need for pformation and upgrading.

In this industry context, LANXESS performance in the past year to achieve contrarian growth, in addition to the positive exchange rate effect, mainly from the efficient business adjustment plan.

Positive and quick response and flexible development strategy are important manifestations of efficient adjustment.

In the past one or two years, LANXESS not only focused on improving production technology, but also achieved quality growth, and accelerated the pace of restructuring.

So as to lay a more solid foundation for the future.

In September 2015, LANXESS and Saudi Aramco jointly established a rubber company, which completely changed Lansheng's dependence on raw materials in the field of synthetic rubber, and realized the entire synthetic rubber production value chain from oil extraction to final product, which consolidates Lansheng's leading position in the global synthetic rubber field.

It is reported that the joint venture will start operation in April this year.

After adjustment, the structure of lanxen's special chemicals, chemical intermediates and high-performance plastics products is more balanced, laying the foundation for growth.

"Brand new" LANXESS will focus on the middle market and the growth areas in North America, China and Southeast Asia.

In the 2015 fiscal year, sales in LANXESS in China were 924 million euros, down 4.2% from the same period last year, mainly due to the decline in prices of products caused by the decline in raw material prices.

ARLANXEO, a joint venture between lanxon and Saudi Amy, helps us achieve the backward integration of value chains.

The new joint venture will officially start in April 1st, making us one of the most powerful suppliers in the global rubber market. "

LANXESS China CEO Qian Mingcheng said.

"Besides, after the establishment of the rubber joint venture, our business structure will be more balanced and optimized, which will lay a solid foundation for future development."

For many years, Lansheng focused on rubber industry.

Today, LANXESS looks at other areas, such as agrochemicals, high-performance plastics and special chemicals used in leather or water treatment industries.

LANXESS plans to take the lead in a diversified and volatile market and further expand its business.

According to Qian Mingcheng, Lansheng will also strengthen investment in its own production facilities, especially in China.

Although China's economic growth has slowed down, LANXESS still regards China as one of the most important growth areas, and the growth and increment of China's economic growth is still higher than other mature markets.

He believes that supply side structural reform can bring huge opportunities for development of China's chemical industry.

The good performance of LANXESS's 2015 performance has laid a solid foundation for future development.

We will continue to move forward to become a more profitable, special chemical company with less impact on the cycle and greater growth potential. "

Qian Mingcheng said.

"At present, we are trying to find potential suitable takeover targets, but our target is not very large enterprises, but those with relatively small leadership in specific areas.

The chemical industry is a highly cyclical industry, and we need to diversify our businesses and products as much as possible. "

Qian Mingcheng added.