Lanxess Closes Plants as Q2 Profit Slumps, Lowers Outlook

Specialty chemicals maker Lanxess is cutting costs and capacity after a weak second quarter. The German firm’s Q2 2025 sales fell 12.6% year-on-year to €1.47 billion amid soft demand, and core earnings dropped over 17%. In response, Lanxess is shuttering certain production sites and tightening its belt. The company confirmed it closed its hexane oxidation plant in Krefeld-Uerdingen, Germany by the end of Q2 and plans to shut down its Widnes site in the UK by 2026 due to high operating costs. These closures are part of a broader “production network optimization” to address global demand weakness.

Lanxess also revised down its full-year profit forecast. It cut its 2025 EBITDA guidance to €520–580 million (from a previous €600–650 million) citing ongoing sluggish market conditions. Earlier this year, Lanxess divested its low-margin Urethane Systems unit and used the proceeds to pay down debt, sharpening its focus on niche specialty additives and consumer protection chemicals. CEO Matthias Zachert emphasized that while near-term markets are challenging, these proactive measures – including consolidation of production and efficiency improvements – are aimed at protecting profitability and positioning Lanxess for a rebound when demand recovers.