This is the type of news that makes a lot of noise. Lanxess sold its business unit tied to the production of chromium to Chinese company Brother Entersprises. The announcement was made by the German company that produces chemicals, on August 12th, even though the proper go ahead will be given once the anti-trust authority has given its blessing to the deal.
The details
The agreement consists of a journey that will be concluded by the end of the year, with the Newcastle factory (South Africa) where Lanxess produces sodium dichromate and employs 220 people, will completely be in Chinese hands. Lanxess’ other South African production site in Merebank will continue (presumably till 2024, it is being said in Germany) to produce chromium salts for the tanning industry. Until then, it will do so on behalf of Brother.
The players
Brother Enterprise was founded in 1991 from the ashed of Haining Leather Chemicals Factory, one of the largest producers of chemicals for the tanning industry present in China at that time. Lanxess is a leading company in the chemicals’ segment. It had revenue for 7.2 billion euro in 2018, employs circa 15,400 people in 33 countries, where it is present with 60 production sites. “We have successfully re-organized all activities surrounding our chromium business unit over the last few years. Yet, it is no longer a point of focus in our strategy for the future, – explains Matthias Zachert, president of Lanxess Ag – We are therefore convinced that the future and further growth of the business can be better implemented under the guidance of Brother Enterprises”.
Images taken from Lanxess.com
