Lanxess plans to terminate production at its recently acquired Ankerweg site by November 2018, the company announced last week. The former Chemtura polyalphaolefins plant produces base oils for industrial lubricants and active ingredients for an agrochemical company.
After acquiring Chemtura in April of this year, Lanxess conducted an analysis of all former Chemtura production sites and determined the Ankerweg site cannot be run on a competitive basis. The facility has capacity to make 15,000 metric tons per year of PAO, according to LubesnGreases 2017 Nonconventional Base Stock Guide.
Photo courtesy of Chemtura
The Akerweg facility is the site of Chemtura’s former PAO plant, commissioned in mid-2013.
As a result of the closing, the companys agrochemical manufacturing agreement will end in November of next year. Lanxess can produce the volume of base oils it needs to cover its own demand for the production of high-performance lubricants as well as market demand at its Elmira site in Canada, the company said in a press release.
Customer should not expect significant changes, Vice President of Corporate Communications Ingo Drechsler noted in an interview. The Elmira plant is an approved source for all current customers, he added.
The Elmira plant, located in Ontario, Canada, has the same PAO capacity as the Ankerweg site. It manufactures synthetic lubricants and additives and is home to a pilot plant used to create and test new products and production processes, according to the company website.
Lanxess announced its $2.5 billion acquisition of Chemtura in September 2016, and received all the necessary approvals by April of this year. The specialty chemicals company expects approximately 100 million ($118.1 million) in synergies from the acquisition by 2020. an estimated 140 million in associated one-time costs will be incurred for this, the company said in its press release.