“We can offer
security of supply
for our customers
worldwide.”
The war in Iran is further fueling the already great uncertainty in the global economy – including in the chemical industry. Energy, raw material and transport costs are rising, supply chains are coming under pressure. At the same time, many customers are urgently looking for reliable partners in the Western world who can supply them stably and in compliance with regulations. We talked to board member Hubert Fink about what this means for our business – and how we are ensuring security of supply for our customers.
What is the impact of the war in the Middle East on LANXESS?
Hubert Fink: The war in the Middle East further increases the already high level of uncertainty for the global economy – quite apart from the immense suffering of the civilian population, which is of course at the forefront of our minds. For LANXESS as a company, the immediate consequences are significantly higher costs for energy, raw materials and logistics as markets react to the conflict and supply routes become more volatile.
Mr. Fink, do you see opportunities for LANXESS in this difficult situation?
Hubert Fink: Yes, definitely. Many competitors in Asia are confronted with massively disrupted supply chains. Overall, about half of China's oil imports come from the Gulf States. We see numerous force majeure reports from chemical producers in Asia and the Middle East. When supply chains from Asia break, customers actively look for secure Western world sources – and we are very well positioned there. Our customers can rely on us as a stable partner that continues to supply them with high-quality products and supports them in keeping their own value chains running.
Which products does this apply to?
Hubert Fink: There are a whole range of value chains for which we supply key products. For example, we are the only Western producer of chlorobenzene, and our position is similarly strong in nitrotoluene or cresols. And we are also the "last man standing" in the Western world when it comes to iron oxide pigments. For all these products, we have a reliable, world-scale asset base here in Europe. This robust production network helps us to avoid disruptions and to remain able to deliver – even in a volatile environment.
What about the USA?
Hubert Fink: We have doubled our footprint there in recent years with various acquisitions. This also gives us competitive advantages in this situation, for example with bromine. Our bromine capacities in El Dorado are independent of supply flows from the Middle East. While producers from the region are struggling with logistics and raw material risks, we can deliver stably and give our customers planning security – a strong selling point, especially in regulated applications. In short: our diversified footprint in Europe and the USA increases the security of supply for our customers worldwide.
What does this mean for our customers?
Hubert Fink: In short: our diversified footprint in Europe and the USA increases the security of supply for our customers worldwide. We focus on long-term, reliable partnerships and transparent communication – so that our customers can plan with confidence and keep their own production running, even in challenging times.
