Lanxess Seeing Growth in South America

The German chemical manufacturer Lanxess expects to see significant growth in its South American operations, in the main thanks to increasing business in Brazil. Marcelo Lacerda, the firm’s Brazil-based operations chief stated to news sources last week that it was all part of the company’s plans.

In Q2 sales in South America grew by more than 10 per cent, thanks largely to its polymers unit, which produces synthetic rubber used in tires. Earlier in the year the company acquired a 70 per cent controlling stake in Brazilian rubber maker Petroflex. Soon it will make a mandatory offer to buy the company’s remaining shares. Lanxess expects Petroflex to provide 35-40 million euros ($52-59 million) this year in pre-exceptional earnings before interest, taxes, depreciation and amortization.