NEWS
IN BRIEF
Pyridine closure Aurorium , the former Vertellus , has informed Indiana state authorities that it is to close its pyridines plant in Indianapolis , starting on 3 October at the latest . No rationale was given . The plant has 40,000 tonnes / year of pyridine and picolines capacity and is the largest of its kind in the world , with 12 % of the global capacity . About 159 workers are employed there .
Almac breaks ground CDMO Almac Group has held a groundbreaking ceremony for a $ 65 million expansion project of its North American headquarters campus in Souderton , Pennsylvania . This will increase capacity by 60 %. The focus is on cold chain operations , just-intime processing and analytical testing capabilities to support the development of advanced therapeutic medicinal products .
Inotiv sells Israel assets CRO Inotiv - formerly Envigo - has completed the sale of its business in Israel , which it described as part of the site optimisation plan for its Research Models & Services segment that it launched last year . The buyer was not named . Further assets remain for sale , which have been closed as part of the process .
LBB Specialties united LBB Specialties , a distributor of speciality chemicals and ingredients distribution in North America that has acquired five firms since 2017 , is to restructure its go-to-market strategy through five industry verticals by the end of the year : Care ( formerly Personal Care ), Food & Nutrition , Industrial Specialties ( formerly Advanced Materials ), Life Sciences and LBBS Canada ( formerly Debro ).
‘ Wake up ’, Zachert tells German politicians
“ Politicians need to finally wake up ,” said Lanxess board chariman Matthias Zachert . “ In the current phase of economic weakness , the location Germany is not competitive internationally . We urgently need sustainable framework conditions – above all an internationally competitive electricity tariff for the industry , the reduction of excessive bureaucracy and faster approval procedures .”
Zachert was speaking during the company ’ s Q2 results presentation , during which it also announced the ‘ Forward !’ plan to counteract the current phase of weak economic development . The plan seeks to stabilise earnings in the short term , lower costs in the long term and refine structures and processes .
In the first stage , Lanxess has imposed a Europe-wide hiring freeze and reduced investments . This will lead to one-time savings of € 100 million , half of which will come from cost reductions and half from lower investments .
In the longer term the company will seek to reduce costs by € 150 million / year from 2025 , with the focus on energy-intensive operations . The hexane oxidation facility at Krefeld-Uerdingen site will be shut down by 2026 , while the chromium oxide facility will be sold if possible , or failing that , shut down as well . In the third phase , Lanxess will continue to reorient its portfolio toward speciality chemicals and further expand its range of sustainable products .
“ The chemical industry and Lanxess are in a difficult situation right now ,” Zachert said . There is currently no sign of a recovery in demand anticipated for the second half of the year . When the economy picks up again , we want to get back on track quickly ” Zachert said . However this alone will not be enough and more government action is needed .
The company ’ s Q2 sales were 11.1 % down year-on-year to € 1778 million , due mainly to weak demand in many customer industries , ongoing inventory reduction among customers , and lower selling prices . EBITDA before exceptionals decreased by 57.7 % to € 107 million . Only the Consumer Protection segment achieved growth in sales .
Zachert - Industry needs more from government when economy recovers
8 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981