As a result of the fire that damaged parts of LANXESS’s production facilities for ABS plastics in Tarragona, Spain, on August 18, 2006, the chemicals company is now declaring force majeure to all affected customers in Europe and Latin America. This situation is likely to continue for the next few weeks. “We will make every effort to minimize the effects of this incident on our customers,” said Dr. Stefan Michel, Head of the Europe and Latin America regions in the affected Styrenic Resins business unit of LANXESS.
LANXESS has property and business interruption insurances with the deductibles and coverage amounts usual in the industry. The precise extent of the damage and the cause of the fire are currently being investigated. There is no change to the company’s earnings forecast for the current fiscal year.