International sale

On December 14 Lanxess and DSM reached an agreement involving the sale of DSM Elastomers (producer of EPDM rubber under the brand name Keltan) to the German company for 310 million euro. DSM expects to report a book profit of more than € 100 million as a result of the transaction. Approximately 420 employees will transfer to the new owner upon closing.
The global rubber market for EPDM is expected to show single-digit percentage growth per annum in the next ten years, driven by rising demand in China and Brazil.
Through the transaction, LANXESS plans to strengthen its technology base by gaining access to the ACE technology, that DSM is implementing on a larger scale at its site in Sittard-Geleen. In comparison to conventional technology, this technology reduces the energy and production costs for EPDM and at the same time broadens the application possibilities of the rubber.
Earlier this year, DSM sold the business unit Thermoplastic Elastomers to Teknor Apex.