• EUR 200 million long-term credit line.
• Further diversification of financing sources.
The EIB, the European Union’s Luxembourg-based promotional bank, has approved a EUR 200 million credit facility for up to seven years. The EIB loan carries attractive conditions and diversifies the company’s financing portfolio.
“The EIB is a renowned partner that recognizes LANXESS’ innovative potential and is supporting it by providing long-term financing,” said LANXESS Chief Financial Officer Bernhard Duettmann.
“LANXESS focuses clearly on developing sustainable products and production processes. This fits perfectly with the strategic direction of the EU innovation policy,” said Matthias Kollatz-Ahnen, Vice President of the EIB. “It also matches the priorities of the European Investment Bank, which has significantly expanded its efforts in the environmental sector in the last few years.”
Innovation is central to LANXESS’ ongoing success. In 2010, the company increased its research and development expenses by 15 percent year-on-year to EUR 116 million and another 15 percent increase to more than EUR 130 million is planned for 2011. About 80 percent of this amount is allocated for Germany.
Worldwide, the company employs around 500 people in its research and development facilities. Some 400 experts work at the German sites in Leverkusen, Krefeld-Uerdingen and Dormagen.
At these sites, for example, the company’s experts develop and test high-performance synthetic rubbers for energy-saving “green” tires and high-tech plastics for lightweight construction in the automotive industry.
LANXESS’ research activities are concentrated principally on alliances with universities and research institutes. It currently has around 150 research and development alliances, about half of them with universities and research institutes.
LANXESS has a balanced financing portfolio and a good maturity profile. This is also reflected by solid long-term investment-grade credit ratings with a BBB from Standard & Poor’s and Baa2 from Moody’s Investors Service.
LANXESS (lanxess.com) is a leading specialty chemicals company with sales of EUR 7.1 billion in 2010 and currently around 15,500 employees in 30 countries. The company is at present represented at 46 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
Rudolf Eickeler, Spokesperson Financial and Business Media
T: +49 214 30 40483 / F: +49 214 30 50691 / E: rudolf.eickeler[.]lanxess.com.