MOSCOW (MRC) -- Lanxess announced that it is reorganizing its water treatment portfolio to focus on ion exchange resins, particularly on high-end market applications. As part of this realignment, Lanxess is selling its reverse osmosis membranes business to Suez, a leader in sustainable resource management, said Chemweek.
The companies signed the deal on Wednesday and expect the transaction to be completed by the end of 2020. Financial details were not disclosed. “The membrane business no longer fits in with our strategic focus on specialty chemicals,” said Matthias Zachert, chairman of the board of Lanxess. “We are convinced that under the Suez umbrella, the business has the necessary conditions to develop its full growth potential in the future."
Lanxess produces reverse osmosis membranes, which play an important role in the treatment of brackish and seawater, at its site at Bitterfeld, Germany. Suez will take over this plant and the research facilities with all the employees. In 2019, the business generated sales in the low double-digit million euro range, Lanxess says.
At the same time, Lanxess plans to beef up its ion exchange resins business. The company plans to invest between €80 million and €120 million to build a new production facility in the next few years. “We will invest in additional capacities for ion exchange resins in order to be able to meet the growing global demand. At the same time, we want to grow especially in promising market segments," Zachert said.
The new ion exchange resin plant will have a production capacity of between 20,000 and 30,000 cubic meters and is scheduled for completion within the next five years. Lanxess says it will decide on the exact location shortly. The company currently manufactures ion exchange resins at its sites at Leverkusen and Bitterfeld, Germany; and Jhagadia, India.
"With our applications for water filter cartridges, we are already one of the leading manufacturers. We are now additionally focusing on highly specialized applications that are characterized by high demand and strong growth. For example, in the field of biotechnology, in the semiconductor industry or in the selective removal of metals, such as for the battery industry,” said Bettina Blottko, head of the liquid purification technologies business at Lanxess.
Ion exchange resins are used in cleaning processes in the food and pharmaceutical industries. In the semiconductor industry, they play a key role in the production of ultra-pure water, which is needed in microchip production. There is also a high demand for ion exchange resins in the battery industry due to the trend towards e-mobility. They are also used to extract lithium, nickel and cobalt metals, which are important for battery cell production. Ion exchange resins are also used in power generation, the chemical industry, microelectronics and drinking water treatment.
As MRC informed earlier, Lanxess has announced that it expects its core income to decline in 2020 as the global coronavirus epidemic is expected to damage its supply chains. The company forecasts that profit before exceptional items will slash EUR 50-100 million (USD56.4-112.8 million) as a result of coronavirus, with EUR20 million (USD22.6 million) impact projected for the first quarter. However, the company anticipates its operating business will remain stable for the year.
Russia's output of chemical products rose by 4.4% year on year in May 2020 . Thus, production of basic chemicals increased year on year by 5.4% in the first five months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-May.
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