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Lanxess responds to weak demand with plant closures and reduced earnings guidance
Lanxess has announced further cost-cutting measures, including the closure of production sites in Germany, the UK and the USA. The company has lowered its 2025 EBITDA forecast, citing continued weak demand, price pressure from Asia and trade uncertainties.
Lanxess is taking further steps to streamline its cost base, announcing several plant closures in response to globally subdued demand. The speciality chemicals group has cut its 2025 EBITDA forecast to EUR 520 – 580 million, down from EUR 600 – 650 million, due to persistent market weakness, price pressure from Asia and ongoing tariff disputes with the USA.
In the second quarter of 2025, Lanxess closed its hexane oxidation facility at Krefeld-Uerdingen, Germany, a move announced in 2023 should no buyer be found. Production of chromium oxide pigments at the site will continue. The company will also shut down its Widnes site in the UK, relocating aroma chemicals production to another location by 2026. In addition, bromine products manufacturing at El Dorado, Arkansas, will be streamlined by the end of 2026. Around 135 jobs will be lost as a result of these measures.
Market uncertainty and Chinese overcapacity
CEO Matthias Zachert pointed to a marked deterioration in the economic environment in recent months. In addition to weak demand, European chemical producers are facing competitive pressure from significant Chinese overcapacity. With the US market becoming less accessible to Chinese suppliers, more products are being directed to Europe, intensifying price competition.
The Advanced Intermediates segment is the most affected, while the Specialty Additives business is also suffering from weaker construction demand and higher energy costs. The Consumer Protection segment has been the least impacted, supported by an improved product mix, insurance compensation and cost savings. In the second quarter of 2025, group sales declined by 12.6 % to EUR 1.47 billion, while EBITDA before exceptional items fell by 17.1 % to EUR 150 million.
