Arlanxeo intends to close its Keltan production unit in Orange, Texas, USA in the second quarter of 2020. Arlanxeo says it will “strive to limit the impact of the closure by working in close cooperation with all affected stakeholders, both internally and externally”.
Arlanxeo reports that it has successfully ramped-up sales of EPDM (Ethylene Propylene Diene Monomer) rubber produced in the Kingdom of Saudi Arabia and marketed under the Keltan KSA brand name. Marketing and sales of the new EPDM grades are based on an agreement concluded between Arlanxeo and Saudi Aramco in 2018, while collaboration has been further enhanced by the take-over of full ownership of Arlanxeo by Saudi Aramco beginning of 2019.
As of 1 May, Donald Chen will succeed Jorge Nogueira as chief executive officer of Arlanxeo. Nogueira is retiring from the rubber manufacturer after a career spanning nearly 40 years in the chemical and pharmaceutical industry.
On 10 August 2018 China’s Ministry of Commerce announced plans to implement anti-dumping duties ranging from 23.1 per cent to 75.5 per cent on synthetic halogenated butyl rubber from the United States, the European Union and Singapore starting 20 August 2018.
An agreement was signed today for the sale of Lanxess’ 50 per cent share in the Arlanxeo joint venture to its partner, Saudi Aramco. Should antitrust authorities approve the transaction, Lanxess will receive approximately 1.4 billion euros in cash after deducting debt and other financial liabilities for its 50 per cent share in the business, which is valued at 3.0 billion euros. Lanxess, which at the end of June 2018 had a net financial debt of 2.6 billion euros, says it plans to use the proceeds to strengthen its financial basis and reduce net financial debt.
Over the next three years, Arlanxeo will invest “mid double-digit million” euros to modernize its production sites in Triunfo, Brazil and La Wantzenau, France.
A Memorandum of Understanding (MoU) covering the co-development of synthetic rubber technologies has been signed between Hankook Tire and Arlanxeo. Under the terms of the MoU, the two companies will jointly study and develop new high-performance synthetic rubber grades and applications, with the aim of increasing tyre performance from the early stages of product development.
Prices for Arlanxeo Buna and X_Butyl products have risen from 1 May 2018, an increase that Arlanxeo says have been “driven by the overall market situation.” Customers have been individually contacted regarding the price increases.
Arlanxeo, a global manufacturer of synthetic elastomers, has developed a rubber compound that can be used in the future to seal tyres. This solution for so-called self-sealing tyres replaces the spare wheel and also presents an alternative to a repair kit or run-flat tyre. An appropriate rubber compound from Arlanxeo, which is applied on the interior of the vehicle tyre, enables holes occurring in the tyre to be automatically sealed, so the driver can continue driving.
Starting 9 September, Jorge Nogueira is chief executive officer of Arlanxeo. He succeeds Jan Paul de Vries, who has left the synthetic rubber manufacturer to “seek a new professional challenge.” Prior to his appointment as CEO, Nogueira headed the company’s Tire & Specialty Rubbers (TSR) business unit, and he been a member of the Arlanxeo Executive Board since the joint venture was founded in April 2016.
Lanxess reports that sales in the Arlanxeo business segment rose 24.6 per cent year-on-year to 835 million euros. EBITDA pre-exceptionals decreased 3.0 per cent to 92 million euros; the speciality chemical company says increases in energy costs “in particular stood against the success in passing on increased raw material costs.” EBITDA margin pre-exceptionals was 11.0 per cent, against 14.2 per cent a year earlier.
The Arlanxeo synthetic rubber joint venture opened a new facility in China last month. Called the Rubber Technology Centre, the premises within the Changzhou National Hi-Tech District contains five labs and brings together its testing, mixing and production capabilities under one roof. With the new facility, Arlanxeo aims to position itself as an end-to-end technology platform leading the industry.
The Executive Board for the new Arlanxeo synthetic rubber joint venture has been announced, with parent companies Lanxess and Saudi Aramco gaining equal representation on the four-person Board.
State-owned oil company Saudi Aramco and specialty chemicals company Lanxess report that all pertinent authorities have cleared the joint venture agreement signed by the two parties last September, and as a result their joint synthetic rubber company will come into being on 1 April 2016. The 50/50 joint venture will be known as Arlanxeo.
