UBE Completes 4.6 Billion Euro Acquisition of Lanxess Polyurethane Business

On April 2, 2025, Japan’s UBE Corporation announced the completion of its €4.6 billion transaction to acquire the polyurethane systems business of Germany’s Lanxess. First disclosed in October 2024, the deal includes five production sites across the US, Europe, and China, as well as approximately 400 employees.

Lanxess’ polyurethane systems division, with a legacy spanning 70 years, specializes in high-performance polyurethane resins for advanced sectors such as semiconductors. The acquisition involves 11 subsidiaries, including Shanghai Covestro (China) Investment Co., Ltd. and Jiangsu Lanxess High Performance Materials Co., Ltd., with a 12-month revenue of €250 million. Lanxess expects to generate €500 million from the sale, helping to reduce net debt by 30%.

Lanxess CEO Matthias Zachert emphasized, “This sale marks a pivotal step in our transformation into a pure specialty chemicals company.” Over the past three years, Lanxess has divested polymer-related assets to focus on high-margin specialty products, including acquisitions of INTACE, Theseo, and Emerald Kalama.

For UBE, the acquisition represents a strategic move to expand its footprint in specialty chemicals, particularly in polycarbonate diols (PCD) and polyurethane dispersions (PUD). By leveraging Lanxess’ expertise, UBE aims to strengthen its market position in semiconductors and other high-end applications.

Lanxess’ transformation strategy appears to be yielding results: in January-September 2024, the company reported €1.598 billion in revenue, with strong growth in consumer protection, specialty additives, and intermediates. Analysts believe these steps will bolster Lanxess’ resilience against volatile raw material prices and demand uncertainties.

This acquisition not only enhances UBE’s technological capabilities but also marks a major milestone in the global specialty chemicals landscape, signaling a shift toward higher-value, innovation-driven portfolios.