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2016-06-28 | Speeches

Pre-K Fair 2016 Press Conference

“Quality Works.”

Address by Dr. Hubert Fink, Member of the Board of Management LANXESS AG

Welcome ladies and gentlemen, and thank you for coming to this pre-fair press conference and attending our presentation.

All of us at LANXESS are truly looking forward to K 2016, and with good reason.

As a company, we have made enormous progress over the past 24 months. Not only have we established a new strategic position for our business … we have also achieved some significant “wins” with respect to new applications for some of our advanced solutions.

As many of you know, LANXESS is a leader in the development of lightweight solutions for the automotive industry … and the advanced materials we produce are helping manufacturers build cars that are lighter, safer, more aerodynamic and more fuel-efficient.
These materials include Pocan and Durethan – our signature high-performance thermoplastic polymers – and Tepex – our high-performance continuous fiber reinforced thermoplastic composite system.

And so we are extremely pleased that the Honda Motor Company has elected to deploy some of these solutions in their 2016 Honda Clarity hydrogen fuel cell vehicle.

Using Tepex in combination with Durethan, Honda is leveraging one-shot molding technology enabled by LANXESS to manufacture the world’s first hybrid-molded rear bumper beam for this vehicle.

This represents a significant advance – because a one-shot molding process makes possible the production of large components out of plastic and continuous glass fiber reinforced thermoplastic composites.

This not only allows for the production of parts that are about 50 percent lighter than those made from metal … but also results in a significantly streamlined production process for the automotive industry.

This is one of the latest examples of the kind of advanced solutions LANXESS has provided to its clients since it was founded in 2004.

Of course, we have made a number of adjustments to our portfolio of products since then. Today, LANXESS is a global specialty chemicals company, manufacturing engineering plastics, intermediate chemicals and specialty chemicals for the many industrial sectors we serve.

This represents a shift from the past, when our name was – in many circles – synonymous with the production of advanced grades of synthetic rubber.

However, we have not abandoned our rubber business.

On the contrary, we have taken it to the next level. Thanks to our joint venture with Saudi Aramco, the world’s largest integrated energy enterprise, a new force has entered the global synthetic rubber business … ARLANXEO.
I am pleased to say that the CEO of ARLANXEO – Jan Paul de Vries – is here with us today. He will introduce his company to all of you later on in our program.

LANXESS now operates 52 production sites in every key market across the world, with about 16,600 employees stationed in 29 different countries. In 2015, we generated 7.9 billion euros in sales.

Our business is fairly straightforward: We energize chemistry for our clients. We accomplish this by providing them with a broad range of top-quality products and solutions … by taking advantage of our leading technologies and strong market positions … and by expanding our operations in attractive, mid-sized markets.

To put it another way, LANXESS believes QUALITY is the key to the future … for our customers, partners, shareholders and employees.

We have been very busy over the past 24 months, working hard to establish a new strategic position for our enterprise.

And by and large, we have achieved our goals. Since 2014, we have executed a successful capital increase … put a new leadership team in place … realigned our group a full year ahead of schedule … successfully ramped up two new world-scale plants in Asia … kicked off new growth projects … and, of course, overseen the creation of ARLANXEO, which officially commenced operations this past April.

Given that LANXESS transferred all production assets for synthetic rubber over to ARLANXEO, it logically follows that we would unveil a new organizational setup, which we did as our JV came online.

The “New” LANXESS, as we like to call it, has three core segments:

Advanced Intermediates, which serves diverse end markets and industries … Performance Chemicals, which produces customized specialty chemical solutions … and High Performance Materials, which manufactures polyamides and advanced plastics – such as Durethan and Pocan – for the automotive industry and other vital production sectors.

This work is integral to our corporate culture, which is strongly focused on generating market-oriented innovations.

To this end, LANXESS dedicated 130 million euros to its R&D efforts in 2015. We currently have 1,060 patent families covering some 6,850 intellectual property rights.

And we are pleased to report that we now have more than 220 R&D projects in our pipeline. These figures clearly show that the specialists working in our R&D laboratories are fully engaged.

We are therefore very excited about what the future holds – both for our company … and for the customers we serve.

That is why we are looking forward to October, when K 2016 finally kicks off.
Our motto for this year’s event is “Quality Works.”

We feel this phrase perfectly encapsulates not only our excellent products, our global reach and our customer orientation … but also our efficient processes and – above all – our superior service platform.

Of course, I am also talking about our application development engineering expertise in all stages of advanced component development, which is integral to our added-value compounds business of our engineering plastics business.

The Rhein Chemie Additives, Inorganic Pigments, Advanced Industrial Intermediates and High Performance Materials business units will represent LANXESS at this year’s fair, along with ARLANXEO.

We have made sure that they all will have sufficient space in Hall 6 to display their most exciting products and services.

We hope that each of you will have an opportunity to stop by and visit us. After all, we are a company on the move right now, and we want to show you how “Quality Works” for our clients.

Thank you very much for your attention.

Forward-Looking Statements

This news release contains forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.


Mark Mätschke

Mark Mätschke
Head of General Press and Trade & Technical Press

Phone: +49 221 8885 3372

Fax: +49 221 8885 4994

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