After chrome, Lanxess also says goodbye to its Leather Unit (tanning). The German chemicals’ giant announced its 2019 results yesterday, and took the occasion to communicate its intention of “selling the business unit” tied to leather.
Negative context
Lanxess sold goods for 6.802 billion euro during 2019, in line with the previous year (6.824 billion). Net revenue was of 240 million euro, against the 282 million of the previous year (-14.9%). The contraction, according to the company, took place mainly to “realign the metal business”. Its EBITDA increased by 3.3.% to 1.019 billion euro. “Even throughout the challenging year, we were able to resist the first true test we face due to our re-alignment. Lanxess is now more profitable and stable than ever”, stated Lanxess Ag’s president of the board, Matthias Zachert, who also announced that “during 2020 the company will be more focused on the consumer protection segment and new application in the technology field of batteries”.
Lanxess sells its Leather Unit
“The Business Leather Unit is, as of December 31st, 2019, no longer active – writes the German company -. It is part of our strategic plan to sell off the unit”. This is the second step taken by Lanxess to remove itself from the tanning segment. Last January, antitrust authorities had given it the okay to sell off its Chrome Chemicals unit. The Business Unit was sold for about 80 million euro to Brother Enterprises, Chinese producer of other chemicals for the tanning segment.
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