LANXESS Vision: Being Globally Active With Strong Local Orientation

German specialty chemicals company LANXESS says that it remains committed to local innovation and collaboration through expertise and technology knowhow on emerging industries.

The Cologne-based company reported improved sales and earnings in the second quarter of 2026 compared with the prior year.

LANXESS Chief Financial Officer Oliver Stratmann said the company is looking at more value-driven growth instead of just expanding size as it keeps up innovation and development efforts on a number of emerging industries in China, such as specialty lubricants for high-speed railway and humanoids.

The LANXESS Asia Pacific Application Development Center (AADC) went into operation in June 2021 at the Shanghai Chemical Industry Park.

"The AADC has been our main pillar to attract young talent in China, and also where we can respond to customers' need for tailor-made products," Stratmann said in an interview during a recent visit to Shanghai.

It also serves as a market sensor where it adjusts products to exactly what the local market needs.

"The Shanghai Chemical Industry Park also plays an important role as an interactive platform for us to better connect with customers and make sure our local offerings are in line with relevant laws and regulations," he added.

"Being globally active and having strong orientation locally are important for our business in the future."

LANXESS aims to become a climate neutral company by 2040 and expects to make its entire upstream and downstream value chain climate-neutral by 2050.

"China's 15th Five-Year Plan has also placed greater emphasis on sustainability and we're also moving towards that same direction with a consistent approach," Stratmann observed.

Michael Rockel, CEO of LANXESS China & Global Business Unit Head of Liquid Purification Technologies (LPT), said it's also monitoring a number of emerging industries in the China market.

"We're actively identifying growing industry clusters with our local resources global network such as data centers and chip-related clusters, as it gives rise to tailor-made special chemical additives and solutions," he added.

In the second quarter the company generated sales of 1.561 billion euros (US$1.82 billion), representing a 6.5 percent increase on the prior-year figure of 1.466 billion euros. EBITDA pre exceptionals came in at 152 million euros, up 1.3 percent from the 150 million euros reported in the same quarter last year.

The increase in earnings stemmed from improved demand and correspondingly higher sales volumes. Through price increases, it was largely able to offset the impact of higher raw material and energy costs.

The improvement in business performance is evident in each of its three segments, namely consumer protection, specialty additives and advanced intermediates, which all witnessed sales and profit growth.

A comparison with the first quarter of 2026 highlights the development in the second quarter even more clearly. Sales rose by 13.3 percent, and EBITDA pre-exceptionals increased by 61.7 percent.

Free cash flow also improved significantly compared to the previous quarter: After a negative 29 million euros in the first quarter of 2026, it stood at 56 million euros in the second quarter.

For full-year 2026, the company confirms its guidance from March and continues to anticipate EBITDA pre-exceptionals of between 450 million and 550 million euros.