LANXESS AG announce FY09 cost-cutting package

German specialty chemical group, LANXESS AG has announced a series of procedural as well as employee-related measures worldwide to cope with decline in demand amidst the deepening economic crisis named "CHALLENGE 09" expected to lower its cash outflows by EUR 50 mln over the period 2009/2010. After holding negotiations with employee representatives and the IG BCE (the German Mining, Chemical and Energy Industry Union), a 35-hour working week will be introduced w.e.f. March 2009 for around 5,000 German non-managerial employees in 2009 with a corresponding remuneration decrease for initially 12 months. In addition, the non-managerial staff will enjoy no bonuses for the year 2009. While the managerial employees' variable salaries will be adjusted and their annual fixed salary reviews for 2009 will be postponed by at least six months, the variable salary of LANXESS AG Board of Management will be reduced to 10% of fixed salary. Worldwide, salary reviews will also be postponed by at least six months. In some countries, salary increases will be postponed by twelve months. In addition, measures to lower personnel costs will be agreed upon according to the respective country conditions. LANXESS currently has around 15,000 employees in 21 countries and is represented at 44 production sites worldwide.
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