Lanxess And Saudi Aramco Form Arlanxeo

April 1, 2016
Lanxess and Saudi Aramco complete the formation of Arlanxeo, their 50-50 joint venture for synthetic rubber.

Specialty chemicals company Lanxess and Saudi Aramco complete the formation of Arlanxeo, the companies’ 50-50 joint venture for synthetic rubber. The deal was first announced in September 2015 and all relevant antitrust authorities cleared the transaction by February 2016, according to Lanxess. With the closing of the transaction, a 50% share in Arlanxeo was transferred to Dutch Saudi Aramco subsidiary, Aramco Overseas Holdings Coöperatief U.A. In return, Lanxess received cash proceeds of around 1.2 billion euros.

Lanxess plans to invest around 400 million euros of the proceeds from the transaction in organic growth, according to the company. Another roughly 400 million euros is earmarked for a further reduction of its financial debt position and around 200 million euros is planned for a share buyback program.

The composition of the company’s Shareholders‘ Committee was also announced. Lanxess Chairman of the Board of Management Matthias Zachert chairs the committee. Warren W. Wilder, vice president chemicals at Saudi Aramco, is vice chairman. Additional members of Arlanxeo’s Shareholders’ Committee are Michael Pontzen, Lanxess chief financial officer and Khalid H. Al-Dabbagh, controller at Saudi Aramco.

For more information, visit:

Sponsored Recommendations

Heat Recovery: Turning Air Compressors into an Energy Source

More than just providing plant air, they're also a useful source of heat, energy savings, and sustainable operations.

Controls for Industrial Compressed Air Systems

Master controllers leverage the advantages of each type of compressor control and take air system operations and efficiency to new heights.

Discover Your Savings Potential with the Kaeser Toolbox

Discover your compressed air station savings potential today with our toolbox full of calculators that will help you determine how you can optimize your system!

The Art of Dryer Sizing

Read how to size compressed air dryers with these tips and simple calculations and correction factors from air system specialists.