COLOGNE, GERMANY: Lanxess AG said that is streamlining the chrome value chain of its leather business by concentrating production in South Africa, where chemicals for tanning agents are processed. Here, chrome ore is processed into the intermediate sodium dichromate and ultimately to chrome specialities, predominantly chrome tanning salts for use in tanneries worldwide.
In addition, the company said that it will stop production at the Zarate site, Argentina in the fourth quarter of 2017. Lanxess currently operates production facilities for sodium dichromate and chrome tanning salts in both countries: in Argentina at its site in Zarate, and at its sites in Newcastle and Merebank, South Africa.
The site closure in Zarate will affect 170 employees. Lanxess will continue its other operations in Argentina at its production sites in Burzaco and Merlo (Province of San Luis), from where the company offers comprehensive solutions for the rubber industry. Lanxess currently has some 400 employees in Argentina, the company said.
"This strategic measure enables us to further strengthen our competitiveness in the chrome chemicals business. Moreover, it allows us to focus even more on our business with organic leather chemicals and thus bolster our leading position as a provider of innovative, service-intensive specialities for the leather production,” said Luis Lopez-Remon, head of the Lanxess leather business unit.
“It is our intention to enter into talks with employee representatives without delay in order to find responsible solutions for all affected employees,” concluded Lopez-Remon.
© Chemical Today News
Read More: Lanxess to stop chrome chemicals production in Zarate, Argentina
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