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LANXESS business unit Advanced Industrial Intermediates gains new strengths/ sets new direction

Mumbai, January 12, 2015. LANXESS, the global specialty chemicals company is currently undergoing strategic realignment within the organization as part of its ‘Let’s LANXESS Again’ project. One of its largest business units Advanced Industrial Intermediates (AII), which until now catered to intermediates for agrochemicals, pharmaceuticals, dyes, coatings among others, will now also take over the antioxidants and accelerators businesses previously managed by the Rubber Chemicals (RUC) business unit at LANXESS.

The restructured business unit AII's core business will continue to be the production and global marketing of high-grade industrial chemicals. The expansion of its current product portfolio through the addition of the business unit RUC's antioxidants and accelerators fits in very well with the existing business model. This realignment will allow leveraging the synergies between the two erstwhile BUs, build a competitive sales structure with improved efficiencies, allow competitive access to raw materials and utilities, enable sharing of resources and optimizing costs. With its networked global production organization and marketing operations, the AII business unit has been highly successful in the past, even though its products are in an environment of stiff competition from the products of other suppliers.

“In the AII business unit we operate a chemical business that has long-term perspectives. This is based largely on sustainable customer relations and trust built up over many years in the markets in question. Similarly, we want to develop strong relations with the customers of antioxidants and accelerators previously served by BU RUC. It is very important to me that we maintain long-term customer relationships in the future as well. We would continue to leverage these relationships and our market experiences for reaching out to customers with the rubber chemicals products” said Mr. Hubert Fink, Head – Business Unit, Advanced Industrial Intermediates, LANXESS AG.

“I believe that we have an excellent example of efficient, competitive and sustainable manufacturing with the BU AII’s manufacturing operations in Nagda, Madhya Pradesh. Under the realm of BU AII, the RUC production assets in Jhagadia will also be run in a similar manner. Thus, we now have a wider basket of products to offer to our customers in India and overseas. Together with these assets, an expanded portfolio and our capabilities, I am optimistic that we will be able to leverage the synergies for profitable growth”, added Mr. Neelanjan Banerjee, Senior Vice President – BU AII and Senior Executive Director, LANXESS India.

LANXESS is a leading specialty chemicals company with sales of EUR 8.3 billion in 2013 and about 16,700 employees in 29 countries. The company is currently represented at 52 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. LANXESS is a member of the leading sustainability indices Dow Jones Sustainability Index (DJSI World and DJSI Europe) and FTSE4Good.

Forward-Looking Statements:
This news release may contain 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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