Lanxess sells reverse osmosis unit to Suez
01 August 2020
Lanxess, a global specialty chemicals company with a regional office in the UAE, says 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, says the Germany-based company.
Lanxess will now focus on the ion exchange resins business and intends to grow here primarily in markets for high-end applications.
On its key exit, Lanxess Chairman Matthias Zachert says: “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 states, 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.
According to Zachert, Lanxess will further expand its ion exchange resins business. The company plans to build a new production facility, for which it intends to invest between $80 million and $120 million 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 states.
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.
“With our applications for water filter cartridges, we are already one of the leading manufacturers. We are now additionally focusing on highly specialised applications that are characterised by high demand and strong growth,” remarks Bettina Blottko, the head of the Liquid Purification Technologies business unit at Lanxess.
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