LANXESS AG to defer investment projects due to global economic crisis

05-Jan-09

Specialty chemicals major LANXESS AG has recently announced postponement of investment projects due to the current global economic crisis to achieve 'financial flexibility' for 2009. According to its revised plans, the new Butyl Rubber facility in Singapore is expected to commence operations in 2012, with groundbreaking - previously scheduled for January 2009 - postponed until the fall. Further, plans for capacity expansions in Leverkusen and Antwerp and the planned move of the group headquarters from Leverkusen to Cologne will also be deferred. However, the company said in the release that it adheres to its EBITDA pre exceptionals guidance for 2008. The EBITDA figure will be influenced by the valuation of inventories at the end of the year. The company still expects EBITDA pre exceptionals to come in at between EUR710 mln and EUR730 mln for 2008.