FRANKFURT, Dec 19 - German chemicals group Lanxess (LXSG.DE) will delay construction of a butyl rubber plant in Singapore and put off other investments to conserve cash for what it expects to be a difficult 2009, it said on Friday.
The Singapore plant will now come on line only in 2012, it said, adding plans to expand capacity at plants in Leverkusen and Antwerp and the planned move of group headquarters from Leverkusen to Cologne will also be postponed.
"Despite the decline in demand in the fourth quarter 2008, Lanxess adheres to its EBITDA pre-exceptionals guidance for 2008," it said, noting core profit will be influenced by the valuation of inventories at the end of the year.
"Lanxess expects demand to be very weak in the first quarter of 2009 and is preparing for a difficult year on the whole. If demand stays at its current low levels, Lanxess will implement further measures globally," it said.
The Singapore plant will now come on line only in 2012, it said, adding plans to expand capacity at plants in Leverkusen and Antwerp and the planned move of group headquarters from Leverkusen to Cologne will also be postponed.
"Despite the decline in demand in the fourth quarter 2008, Lanxess adheres to its EBITDA pre-exceptionals guidance for 2008," it said, noting core profit will be influenced by the valuation of inventories at the end of the year.
"Lanxess expects demand to be very weak in the first quarter of 2009 and is preparing for a difficult year on the whole. If demand stays at its current low levels, Lanxess will implement further measures globally," it said.
