Lanxess to cut 270 jobs at Canadian plant
FRANKFURT (Reuters) - Germany's Lanxess is cutting 270 jobs at its plant in Sarnia, Canada, which will result in one-time costs of up to 20 million euros ($30 million) this year, the German chemicals group said on Friday.
Lanxess said in a statement it would streamline service areas such as administration and IT for the butyl rubber unit and shut down its technical rubber (NBR) plant at Sarnia in the second quarter of this year and move production to France.
"Because of the constantly rising energy and raw material costs in Canada, there is no alternative to this efficiency program," said Werner Breuers, a Lanxess board member.
The company said its La Wantzenau plant in France will take over the production of technical rubber, and the whole exercise will yield mid single-digit-million-euro savings from 2009.
"Our modernized plant in La Wantzenau ... is due to its scale in a position to take over the entire NBR production from Sarnia in much more competitive conditions," Breuers said.
Around one third of the jobs to be cut will result from the closure of the NBR plant built over 60 years ago, it added.
Butyl rubber is used for tire production, and technical rubber used for plastics and as adhesive raw materials.
Lanxess shares were up 2.6 percent at 23.81 euros at 1538 GMT, in line with the German midcap market.
(Reporting by Mantik Kusjanto; Editing by Paul Bolding)
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