Management choose 'Lanxess' as the name for the rubber and polymer business

Management choose 'Lanxess' as the name for the rubber and polymer business

Lanxess is the name for the new company Bayer plans to spin off to house its chemicals, rubber and several of its polymer activities. The new identity was chosen from 3,500 employee and consultant suggestions and aims to combine the French verb ‘lancer’ (‘to put in motion’) and the word ‘success’.

Announcing the choice at today's annual financial press confererence in Leverkusen, Bayer chairman Werner Wenning said: “We are aiming for success as quickly as possible.” The group will decide later this year whether to use an IPO or a spin off to existing shareholders for the new firm.

Employing 20,000 people, the business will include ABS, nylon and PBT as well as Bayer's synthetic rubber materials. Wenning predicted positive net earnings for the current year for the Lanxess business after it has taken E1bn in special charges in 2003.

Bayer's polycarbonate and PU businesses will remain with the group under the Bayer MaterialScience banner. Bayer posted a large loss in its 2003 annual results, which it said was largely due to E1.9bn in impairment losses and valuation adjustments in connection with the strategic realignment of Bayer's portfolio. It reported an operating loss of E1.20bn, compared to a profit of E1.61bn for 2002. Net sales were down slightly at E28.6bn compared to E29.6bn in 2002.