Lanxess, a global specialty chemicals company with a regional office in UAE, said it has reached an agreement with French group Suez, a world leader in sustainable resource management, to sell its entire reverse osmosis (RO) membranes business.

 

The move is aimed at developing its portfolio and comes as part of its revamp strategy for water treatment technologies business, said the statement from company based in Cologne, Germany.

 

Lanxess will now focus on the ion exchange resins business and intends to grow here primarily in markets for high-end applications.

 

Both companies signed an agreement to this effect yesterday (July 15). However, the duo did not disclose further transaction details. 

 

On its key exit, Lanxess Chairman Matthias Zachert said: "The membrane business no longer fits in with our strategic focus on specialty chemicals. We are convinced that under the SUEZ umbrella, the business has the necessary conditions to develop its full growth potential in the future."

 

Lanxess, he stated, expects the transaction to be completed by the end of 2020.

 

The membranes, which play an important role in the treatment of brackish and seawater, are manufactured by Lanxess at its site in Bitterfeld, Germany. 

 

With this deal, Suez will now take over this plant and the research facilities with all employees. In 2019, the business generated sales in the low double-digit million euro range.

 

According to Zachert, Lanxess will further expand its ion exchange resins business. The German company plans to build a new production facility, for which it intends to invest between 80 and 120 million euros in the coming years. 

 

“We invest in additional capacities for ion exchange resins in order to be able to meet the growing global demand. At the same time, we want to grow especially in promising market segments,” he stated. 

 

The new ion exchange resin plant will have a production capacity of between 20,000 and 30,000 cu m and is scheduled for completion within the next five years. 

 

Lanxess will decide on the exact location shortly. The specialty chemicals company currently manufactures ion exchange resins at its sites in Leverkusen, Germany, Bitterfeld, Germany, and Jhagadia, India. 

 

"With our applications for water filter cartridges, we are already one of the leading manufacturers. We are now additionally focusing on highly specialized applications that are characterized by high demand and strong growth," remarked Bettina Blottko, the head of the Liquid Purification Technologies business unit at Lanxess.

 

"For example, in the field of biotechnology, in the semiconductor industry or in the selective removal of metals, such as for the battery industry. With our technological diversity, we are ideally positioned for this," she added.-TradeArabia News Service