Capital acquisition boosts industrial transformation and upgrading

——Qian Mingcheng, President of LANXESS Asia Pacific, talks about the company's development strategy

On June 10, LANXESS held an online press conference in Shanghai.

LANXESS believes that the active acquisition strategy implemented by the group has accelerated industrial adjustment and created significant benefits

Joining forces to strengthen the engineering materials sector

Qian Mingcheng said that LANXESS will join forces with Advent International to form the world's leading high-performance engineering polymer joint venture and acquire DSM's engineering materials business (DEM) for about 3.

LANXESS' High Performance Materials (HPM) business unit will also be integrated into the joint venture

Qian Mingcheng said: "This move will further improve LANXESS' business portfolio

According to reports, Lanxess may divest its stake in the joint venture to Anhong Capital as early as three years later at the same valuation

Industrial Restructuring Reduces Risks in Auto Business

Qian Mingcheng pointed out: "A strong alliance can achieve a win -win situation

　　The combination of two global engineering materials giants will bring about changes in sales, profits, production bases, R&D centers and personnel, and will also enhance the business competitiveness of the joint venture on a global scale and generate positive synergistic effect

　　He said that, jointly with Advent Capital, LANXESS will streamline its business and focus on three business segments, namely high-quality intermediates, special additives and consumer protection

　　The automotive industry will be a focus of the new joint venture

　　Mergers and acquisitions bring growth potential to the business

　　LANXESS said the four acquisitions completed in fiscal 2021 strengthened its consumer protection business segment

　　In August last year, LANXESS completed the acquisition of Emerald Kalama Chemical, a U.

　　Qian Mingcheng said that in the consumer protection business sector, LANXESS has added a flavor and fragrance business unit, and the new specialty chemicals business and the benzyl products of the high-quality industrial intermediates business unit have been integrated into the new flavor and fragrance business unit.

　　This business unit supplies high-purity, naturally-equivalent raw materials for consumer products worldwide

　　Seeking Opportunities to Continue to Develop the Chinese Market

　　Qian Mingcheng believes that the flavor and fragrance market has great potential in China, and the products have a wide range of applications, which are all needed by consumers in their daily lives

　　Since these acquisitions are all outside the Chinese market, to a certain extent, the proportion of LANXESS China's sales in the group will be reduced

　　Qian Mingcheng said: "LANXESS will continue to seek development opportunities in the Chinese market, so as to continuously increase investment and support the development of China's economy
.
Although there will be some uncertainties in the face of the challenge of the new crown pneumonia epidemic, LANXESS is still very concerned about China.
The market is full of confidence and has great confidence in the long-term business development in China
.
LANXESS believes that the Chinese market will continue to play an active and significant role in the global economy
.
”