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March 10, 2009 | Backgrounder

LANXESS – at the core of the chemical industry

LANXESS is Germany’s largest listed specialty chemicals group and operates in all important markets of the world. In 2008, the company, which is listed on the Frankfurt Stock Exchange, achieved sales of EUR 6.58 billion.

LANXESS is a global player with strong roots in Germany that go back as far as 1863, the year Bayer was founded. During the realignment of the Bayer Group at the beginning of 2005, parts of Bayer’s chemicals and polymers activities were carved out and transferred to the newly founded LANXESS Group. The Group thereby combines tradition and many years of experience with the dynamism of a young company.

With its extensive portfolio, LANXESS focuses on premium products. Its core business comprises the development, manufacture and sale of high-tech plastics, high-performance rubber, specialty chemicals and intermediates. In addition, it helps its customers in the development and implementation of individual system solutions. In these areas, which are at the very core of the chemical industry, the Group has specific expertise in the form of chemical and application-related know-how and flexible asset management. The Group’s aim is, through innovative products, optimized processes and new ideas, to generate added value for customers and the company.

Many forces combine at LANXESS's 44 sites worldwide to produce the optimal result. This applies both to the products and processes themselves and to the 14,600 or so staff in 23 companies that are responsible for the company’s day-to-day business. LANXESS is treading the path that is inherent in its name: Combined from the French verb “lancer” meaning to thrust forward and the English noun “success”, LANXESS represents the determined will to achieve and the readiness to embrace continual change.

In all its activities the Group subscribes to the principle of sustainable development and considers environmental compatibility and social responsibility, as the basis of all its actions, to be of equal importance.

Innovative high-tech plastics and high-performance rubber

LANXESS’s premium products can be divided up into three areas: The Performance Polymers segment combines all the Group’s polymer-based businesses, i.e. activities in the field of synthetic rubber and plastics production. LANXESS offers a broad portfolio of innovative products, many of which are international leaders. Tires for cars and trucks all over the world are manufactured from LANXESS rubber. The company’s rubber products are also used in windscreen wipers, door seals and cable sheathing.

This success is based on know-how gathered over an entire century – after all, the predecessors of the LANXESS rubber divisions of today invented the synthesis of rubber in 1909. This was a head start in terms of technology and know-how that LANXESS continues to build on daily as a pioneer in rubber manufacturing. The plastics LANXESS produces also offer good potential for growth and innovation. These are used in automotive engineering, electronics, electrical engineering and the dental sector.

High-performance process and functional chemicals

Through its Performance Chemicals segment, LANXESS offers a broad spectrum of process and functional chemicals for many different industries. For example, the Group is a leader in organic colorants for plastics and operates the world’s largest production facility for inorganic pigments, which are used in the construction industry.

The Group also holds leading positions in the production of ion exchange resins, used for example in water treatment, and in leather and rubber chemicals and additive systems for the lubricants and polymer industries.

Basic and fine chemicals for the global market

The Advanced Intermediates segment pools the company’s activities in the field of basic and fine chemicals. Specialist expertise gained over many years and intensive global isomer management in its “aromatics network” of facilities have made the company a leader on the global market with successful brands in these areas too.

Leverkusen, May 2009

Information for editors

You can find further information concerning LANXESS chemistry in our WebMagazine on http://webmagazine.lanxess.com

All LANXESS news releases and accompanying photo, video and audio material can be found on http://press.lanxess.com

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.

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