* To cut about 1,000 jobs through severance packages
* Confirms 2013 outlook for 700-800 mln eur in adj EBITDA
* Aims to diversify business in longer term
FRANKFURT, Sept 17 Germany's Lanxess,
the world's largest maker of synthetic rubber for tyres, said
late on Tuesday it aimed to cut costs by 100 million euros ($133
million) per year from 2015 to counter weak demand from the
As part of a restructuring programme, the group plans to cut
about 1,000 jobs and divest non-core assets accounting for about
500 million euros in annual sales, it said in a statement.
"It is foremost the synthetic rubber activities that are
experiencing a temporary weakness in demand, increased
competition in the market and volatile raw materials prices," it
Lanxess warned last month of a bigger-than-expected drop in
2013 earnings as car markets showed no sign of recovery and
growth in China slowed.
It said the planned job cuts would result from a voluntary
redundancy programme, which includes early retirement packages
and severance pay.
It expects to book a total of about 150 million euros in
one-off charges over this year and next due to the restructuring
In the medium to long term, the maker of chemicals for
drugs, insecticides and for the treatment of leather also aims
to buy businesses to diversify away from its main rubber
activities, it said.
Lanxess, which competes with Exxon Mobil in
synthetic rubber for tyres, tubes and window seals, derives more
than 40 percent of sales from the automotive sector.
It confirmed its outlook for 2013 earnings before interest,
taxes, depreciation and amortisation (EBITDA), adjusted for
one-offs and potential inventory devaluations, of 700-800