Restructuring: Perstorp to reduce workforce by 8%; Lanxess to close facilities in Europe/US

The chemical industry remains under heavy strain from high costs and increased competition, resulting in tightened margins and price pressure. Market recovery is not expected in the near term, as uncertainties regarding tariffs and global trade remain.

Thus, Sweden’s Perstorp has announced a rightsizing initiative where an adjustment of approximately 8% to the global workforce is anticipated. The intention is to secure a stronger and more resilient company at a time when the chemicals industry is facing considerable challenges, it adds.

Perstorp is significantly impacted by the challenges in the market, with a declining trend in profitability. As a result, Perstorp is taking steps to reduce overlaps within the organisation, aiming for an optimised workforce with approximately 8% reduction in global positions.

Perstorp adds the final outcome of the proposed workforce adjustments is currently subject to ongoing discussions with union representatives.

Since 2022, Perstorp has been a wholly owned subsidiary of Malaysia-based integrated chemical firm Petronas Chemicals Group Berhad (PCG), and part of Petronas Group.

Meanwhile, due to the weak global market environment, German chemical group Lanxess has launched restructuring of facilities in US and Europe. The group has already brought forward the closure of its hexane oxidation facility at the Krefeld-Uerdingen site in Germany to the end of the second quarter of 2025.

Lanxess also plans to streamline its global network of aroma chemicals plants and shut down production at its Widnes site (UK) in the course of 2026. Due to high costs, the company can no longer operate the Widnes site competitively.

At the El Dorado site (US), Lanxess plans to increase efficiency of bromine production. These measures are expected to result in permanent annual savings of EUR50 million from the end of 2027.

The specialty chemicals company achieved an EBITDA pre exceptionals of EUR150 million, which is a 17.1% decline compared with the figure of EUR181 million from the same quarter last year. Weaker demand in general was accompanied by lower sales volumes in all segments.

“The economic environment has deteriorated significantly again in recent months. Additionally, ongoing tariff discussions with the US are causing considerable market uncertainty and exacerbating the situation for the European chemical industry. There is currently no improvement in sight for the economic situation,” says Matthias Zachert, CEO of Lanxess.

The sale of the Urethane Systems business unit effective April 1, 2025, at EUR500 million also contributed significantly to the decline in earnings.

Lanxess sold its Urethane Systems business to Japan’s UBE Corporation, thereby divesting its last remaining polymer business.

This transaction marked the final major step in the restructuring of the portfolio toward specialty chemicals.

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