Germany’s Lanxess has announced that it plans to sell it Dorlastan fibres business to Asahi Kasei Fibers Corporation (AKF) of Osaka, Japan. The two companies have widely agreed on the probable text of a sale and purchase agreement and have signed a memorandum of understanding. The agreement itself is expected to be signed shortly. The parties have agreed not to disclose the purchase price. The Dorlastan Fibres business includes production facilities at Dormagen, Germany, and Bushy Park, South Carolina, United States.

As part of the agreement, to make the site at Dormagen, Germany competitive, a plan for the future has been agreed with AKF including a gradual reduction in employment. The business currently has some 280 employees, about 170 of whom will be transferred to AKF. Limited restructuring is also planned to take place at the US site in Bushy Park. AKF plans to retain 160 of the approximately 190 people currently employed there.

"The Dorlastan fibres business has suffered for many years from the migration of textile markets to Asia," said Lanxess management board chairman, Dr. Axel C. Heitmann. "Selling the business to AKF enables Lanxess to avoid closing the Dormagen site, which has been unprofitable for years. This solution offers future perspectives for a substantial proportion of the workforce. Acquiring the Dorlastan business will enable AKF to strengthen its position as a major manufacturer of synthetic elastic fibres and expand its geographical presence."