Saltigo - a new name for high-tech chemistry
Carve-out of LANXESS Fine Chemicals is under way
The Fine chemicals business unit achieves economic independence next year as a separate legal entity - with a new name, a new alignment and a new business model. "Starting in the second quarter of 2006 we will market our fine chemicals expertise throughout the world under the name Saltigo, which will be a wholly owned subsidiary of LANXESS," explained Dr. Axel Westerhaus, head of the Fine Chemicals business unit and designated managing director of Saltigo.
Saltigo will develop, manufacture and market customized solutions for clients in the pharmaceuticals, agrochemicals and specialty chemicals sectors. The Fine Chemicals business unit, which posted sales of nearly EUR 400 million in 2004, already derives some 90 percent of its revenues from custom manufacturing, placing it among the global leaders in this area.
Among the new company's principal goals is to sustainably improve profitability, bringing earnings levels up to those achieved by competitors. "We have everything we need to be successful in a market in which many of our competitors earn healthy profits," said Westerhaus. Saltigo therefore needs to ensure favorable conditions for its business as quickly as possible. Emphasizing that production costs have to be cut by a quarter, Westerhaus expressed his satisfaction at the agreements reached with the LANXESS works council, which he said are the only way to catch up with the competition.
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