Leverkusen, Germany, April 26--Chemical company Lanxess AG announced that it narrowed its net loss last year and said it was preparing a restructuring drive that may include up to 1,200 job cuts.
Lanxess, which was spun off by Bayer AG in January, said it lost euro12 million (US$15.56 million) last year, compared to a wider loss of euro997 million the year before. It did not give figures for the fourth quarter.
Sales were up 7 percent to euro6.7 billion (US$8.69 billion) from euro6.3 billion in 2003.
"Despite the improvements achieved, we were less profitable last year than any of our major European competitors because we were unable to benefit sufficiently from the recovery in the chemical economy," Board Chairman Axel Heitmann said in a statement.
"This situation compels us to make fundamental changes in order to safeguard Lanxess' long-term competitiveness."
He singled out the company's fine chemicals and styrenic resins units and said that as many as 1,200 jobs could be eliminated at a savings of at least euro100 million (US$129.66 million).
Lanxess currently employs some 20,000 people.
The company said it was examining whether to concentrate production of its styrenic resins at one plant, possibly closing either a plant in Dormagen, Germany, or Tarragona, Spain. A decision is expected by June.
Lanxess shares were down 1.46 percent at euro16.19 (US$20.99) in midmorning trading on the Frankfurt.
