Reuters: Lanxess quarterly profit dropped by half, considering job cuts, plant shutdowns

Via Reuters, more bad news for the German chemical industry: 

Aug 4 (Reuters) - Chemicals group Lanxess (LXSG.DE) on Friday set out plans to trim costs, including job cuts, and called on German politicians to support the struggling industry after its quarterly profit fell by more than half.

Lanxess, which until recently had managed to pass rising raw material and power costs onto customers, was one of several German chemical firms that have trimmed their forecasts in the past weeks due to still high energy prices and weak demand.

"We urgently need sustainable framework conditions – above all an internationally competitive electricity tariff for the industry," CEO Matthias Zachert said in a statement.

Lanxess, which makes high-end speciality chemicals such as additives, lubricants, flame retardants and plastics, said it would save 100 million euros ($110 million) this year through strict cost discipline and a Europe-wide hiring freeze.

Further measures focusing on reviewing its energy-intensive operations and streamlining administrative structures will result in annual savings of around 150 million from 2025, Lanxess said.

Zachert added in a call these will include job cuts but did not elaborate on the number. The company said implementing these measures would cost around 100 million euros.

The Cologne-based group plans to shut down the hexane oxidation facility with 61 staff at its Krefeld-Uerdingen site in Germany by 2026. The chromium oxide production facility with 52 employees at the same location would be sold or shut down.

 Well, that doesn't sound like good news. Here's hoping that this works out all right.