Asahi Kasei Set To Acquire Lanxess' Dorlastan® Fibers Business

Asahi Kasei Fibers Corp. (AKF), Japan, may soon buy Germany-based Lanxess Corp.’s Dorlastan® fibers business under terms of a recently signed memorandum of understanding. The companies, which have agreed not to disclose the purchase price, are expected to sign a sale and purchase agreement for the business in the near future, at which point the transaction will be subject to the approval of antitrust authorities.

The Dorlastan sale — including production facilities in Dormagen, Germany, and Bushy Park, S.C. — will mark Lanxess’ first portfolio adjustment. A plan to make the Dormagen site competitive calls for the gradual reduction of employees, with about 170 of the business’ 280 employees being transferred to AKF. Additionally, AKF plans to retain 160 of the approximately 190 Bushy Park employees.

The deal enables Lanxess to avoid closing the Dormagen site, which has been unprofitable for years, according to Axel C. Heitmann, Ph.D., Lanxess Management Board chairman. “This solution offers future perspectives for a substantial proportion of the workforce,” he said. “Acquiring the Dorlastan business will enable AKF to strengthen its position as a major manufacturer of synthetic elastic fibers and expand its geographical presence.”

January/February 2006

 

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