United States. Lanxess announced that it is strengthening its presence in the growing North American market with a comprehensive investment program. The company plans to invest up to $580 million in its North American asset base through 2022.
"North America, and in particular the U.S., is a key growth market for Lanxess, where we have significantly expanded our footprint with our recent acquisitions. We now plan to upgrade our asset base there in order to realize its full potential," said Matthias Zachert, Chairman of the Board of Directors of Lanxess, during a visit to the U.S.
More than $100 million of the total amount will already be spent in 2018, with about $50 million at the company's largest U.S. site in El Dorado, Arkansas, primarily to upgrade the bromine brine exploration network, as well as site infrastructure and pipelines.
El Dorado is the backbone of Lanxess' highly integrated value chain for brominated products. The company currently employs approximately 600 people at the El Dorado site.
The expanded footprint is already reflected in a very strong performance of Lanxess in the United States. In 2017, the company's total U.S. sales increased by approximately 40%, from $1.4 billion to $1.9 billion, the highest number in the company's history. Lanxess also got off to a strong start in 2018. In the first quarter, sales in the U.S. rose about 17% to $525 million, up from $450 million.
An important step on the path of growth in North America was the acquisition of the chemical group Chemtura in 2017. With the acquisition, Lanxess has significantly strengthened its competitive position in the area of lubricant additives and synthetic lubricants for industrial applications.
In February 2018, Lanxess took another step to grow its additive business in North America by purchasing the phosphorus chemicals business of Belgian chemical group Solvay, including its U.S. production site in Charleston, South Carolina.
