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Lanxess finalizes global package to counter crisis
STRATEGIES
Lanxess finalizes global package to counter crisis
L
anxess has put together a global package of measures, named Challenge 09, in order to help
mitigate the effects of weak demand worldwide and strengthen the speciality chemicals group’s position. This package includes a number of technical process improvements as well as measures affecting personnel.
‘We are in the midst of a global recession’, says Axel Heitmann, chairman of the Lanxess board of management. Customer demand, especially in the automotive and construction industries, remained weak in January and the company does not expect ‘the current economic environment to radically improve going forward’, he says. After holding negotiations with employee representatives and the IG BCE (the German mining, chemical and energy industries union), a package of measures was agreed upon for around 5000 German non-managerial employees. These include the introduction of a 35-hour working week with a corresponding remuneration decrease as of March 2009, initially for 12 months, and no bonuses for the 2009 business year. There will also be a reduction in the salary of the Lanxess board of management amounting to 10% of fixed salary, while the annual fixed salary reviews for managerial employees will be postponed by at least six months. Outside Germany, salary reviews will also be postponed by at least six months and in some countries by 12 months. In addition, measures to lower personnel costs will be agreed upon according to the respective country conditions, Lanxess says. Through these measures, which are initially intended for the next 12 months, the company will lower its cash outgoings by roughly €50 million over the period 2009/2010. If economic conditions worsen in the coming months, senior management and employee representatives will meet on a regular basis to discuss further measures. According to Heitmann, Lanxess has the expertise to cope with difficult economic conditions, having already demonstrated its competence in the recent past with the realignment of the company following its spin-off from Bayer [ADPO, August 2004]. ‘I am impressed by the commitment and the flexibility of our employees worldwide,’ he says. ‘We will continue to increase efficiency and focus on innovative technologies as well as products for our customers.
6
Additives for Polymers
Therefore, I believe Lanxess can emerge strengthened from the crisis’, Heitmann concludes. Rhein Chemie, Lanxess’ wholly owned subsidiary, is participating fully in the Challenge 09 package. In addition to the group-wide measures outlined above, Rhein Chemie has negotiated a 35-hour week for a period of two years effective from March 2009 and a reduction in the annual Christmas bonus from 95% to 50% of gross monthly salary in 2009 for non-managerial staff in Germany. The sales structures at the Mannheim headquarters are also to be geared more strongly to the change in customer structure, service units are to be reorganized and the current shift model is to be modified in one production area. Headcount will be adjusted by up to 40 employees in the course of the reorganization. All measures are scheduled for completion by 2011. Rhein Chemie produces additives and specialities for the rubber, lubricants and plastics industries. The automotive industry is its biggest market. The subsidiary has also appointed Hector DiazStringel as the new president and general manager of its US arm Rhein Chemie Corp. Diaz-Stringel has been with Rhein Chemie Corp since 2003, most recently serving as VP of sales and marketing for the Rubber and Plastics Divisions. Before joining Rhein Chemie, he held positions in process and project engineering and project management for Akra – Fibras Quimicas and Mabe Estufas, and in operations management for Specialty Minerals, Inc. Contact: Lanxess, Leverkusen, Germany. Tel: +49 214 30 33333, Web: www.lanxess.com Or contact: Rhein Chemie Rheinau GmbH, Mannheim, Germany. Tel: +49 621 8907 455, Web: www.rheinchemie.com
Rhodia, Dow Corning confirm first target for joint silica/silane development
R
hodia and Dow Corning have revealed that the first stage of their recently announced alliance
[ADPO, January 2009] will be to develop solutions that allow for the introduction of silica in natural rubber in applications such as truck tyres and selected passenger vehicle tyres.
April 2009
Lanxess finalizes global package to counter crisis
L
anxess has put together a global package of measures, named Challenge 09, in order to help
mitigate the effects of weak demand worldwide and strengthen the speciality chemicals group’s position. This package includes a number of technical process improvements as well as measures affecting personnel.
‘We are in the midst of a global recession’, says Axel Heitmann, chairman of the Lanxess board of management. Customer demand, especially in the automotive and construction industries, remained weak in January and the company does not expect ‘the current economic environment to radically improve going forward’, he says. After holding negotiations with employee representatives and the IG BCE (the German mining, chemical and energy industries union), a package of measures was agreed upon for around 5000 German non-managerial employees. These include the introduction of a 35-hour working week with a corresponding remuneration decrease as of March 2009, initially for 12 months, and no bonuses for the 2009 business year. There will also be a reduction in the salary of the Lanxess board of management amounting to 10% of fixed salary, while the annual fixed salary reviews for managerial employees will be postponed by at least six months. Outside Germany, salary reviews will also be postponed by at least six months and in some countries by 12 months. In addition, measures to lower personnel costs will be agreed upon according to the respective country conditions, Lanxess says. Through these measures, which are initially intended for the next 12 months, the company will lower its cash outgoings by roughly €50 million over the period 2009/2010. If economic conditions worsen in the coming months, senior management and employee representatives will meet on a regular basis to discuss further measures. According to Heitmann, Lanxess has the expertise to cope with difficult economic conditions, having already demonstrated its competence in the recent past with the realignment of the company following its spin-off from Bayer [ADPO, August 2004]. ‘I am impressed by the commitment and the flexibility of our employees worldwide,’ he says. ‘We will continue to increase efficiency and focus on innovative technologies as well as products for our customers.
6
Additives for Polymers
Therefore, I believe Lanxess can emerge strengthened from the crisis’, Heitmann concludes. Rhein Chemie, Lanxess’ wholly owned subsidiary, is participating fully in the Challenge 09 package. In addition to the group-wide measures outlined above, Rhein Chemie has negotiated a 35-hour week for a period of two years effective from March 2009 and a reduction in the annual Christmas bonus from 95% to 50% of gross monthly salary in 2009 for non-managerial staff in Germany. The sales structures at the Mannheim headquarters are also to be geared more strongly to the change in customer structure, service units are to be reorganized and the current shift model is to be modified in one production area. Headcount will be adjusted by up to 40 employees in the course of the reorganization. All measures are scheduled for completion by 2011. Rhein Chemie produces additives and specialities for the rubber, lubricants and plastics industries. The automotive industry is its biggest market. The subsidiary has also appointed Hector DiazStringel as the new president and general manager of its US arm Rhein Chemie Corp. Diaz-Stringel has been with Rhein Chemie Corp since 2003, most recently serving as VP of sales and marketing for the Rubber and Plastics Divisions. Before joining Rhein Chemie, he held positions in process and project engineering and project management for Akra – Fibras Quimicas and Mabe Estufas, and in operations management for Specialty Minerals, Inc. Contact: Lanxess, Leverkusen, Germany. Tel: +49 214 30 33333, Web: www.lanxess.com Or contact: Rhein Chemie Rheinau GmbH, Mannheim, Germany. Tel: +49 621 8907 455, Web: www.rheinchemie.com
Rhodia, Dow Corning confirm first target for joint silica/silane development
R
hodia and Dow Corning have revealed that the first stage of their recently announced alliance
[ADPO, January 2009] will be to develop solutions that allow for the introduction of silica in natural rubber in applications such as truck tyres and selected passenger vehicle tyres.
April 2009