German chemical company Lanxess has announced that its first year in business has been a success and claims that as a result of restructuring annual savings of approximately €50 million will have been achieved by 2009.

Sales increased by 5.6% to €7.15 billion in 2005 and  the company reduced net debt from €1.1billion to €680 million.

Lanxess is planning a third package of restructuring measures in order to increase its competitiveness. New measures have been planned for the Polybutadiene Rubber, Butyl Rubber, Inorganic Pigments and Styrenic Resins business units, with an associated one-time implementation cost of €55 million. These measures affect sites in the United States, Brazil, France and Belgium, and involve eliminating up to 250 positions outside of Europe.

Lanxess anticipates that the highest growth rates in 2006 will again be recorded in the emerging markets of Asia, Latin America and eastern Europe. In the chemical sector, Asia – and in particular China – is expected to show the highest rates of growth.

All segments performed to targets this quarter and Lanxess believes it will achieve its economic earnings again this year, enabling it to post positive net earnings.