Lanxess has decided to keep both its ABS plants open

Lanxess has decided against the closure of one of its two ABS plants in Europe after studying the options, which showed that each has considerable scope for savings.

Instead the company will implement a severe cost cutting programme resulting in almost 1,000 job cuts. Some 300 jobs will be lost in the Dormagen styrenics polymer plant and about 500 in fine chemicals. The package announced this morning will cost E150m between 2005 and 2007 but will result in annualised savings of E100m.

Under the plans, styrenics specialities will be focused at Tarragona. Capacity in Dormagen will be reduced and the site will confine itself to making high quality products for Bayer MaterialScience, which retained the Bayblend PC/ABS business when the Lanxess split was announced.