Frankfurt, Germany, December 29--Bayer AG's Lanxess unit said Tuesday it plans cost savings of around EUR20 million ($27.2M)in 2005.
The cuts are mainly in personnel-related costs, Lanxess said in a statement.
The cost cuts will affect around 3,900 employees at German sites, who next year won't receive certain benefits beyond what is covered by an industry-wide collective bargaining agreement, Lanxess said in a statement.
Lanxess wasn't immediately available to say what those benefits are.
Germany-based management won't receive a salary increase in 2005, Lanxess said.
Outside Germany, "significantly smaller" budgets will be made available for salary increases in 2005, Lanxess said.
Bayer is currently spinning off the Lanxess business - which supplies rubber, resins and processing chemicals - to focus of higher-margin polymers, healthcare and agricultural chemicals.
It plans to list Lanxess as an independent company on the stock market on Jan. 31, 2005, with Bayer shareholders to receive one Lanxess share for every 10 Bayer shares held.
