Argentina strike affects LANXESS

13 July 2007

A regional strike in Argentina has interrupted leather chemicals production at the LANXESS site in Zárate. The strike affects a total of 14 companies and was initiated on July 7 by the regional chemicals and petrochemicals trade union in the cities of Zárate and Campana. As a precautionary measure, LANXESS have now declared a state of force majeure to their customers in the leather industry, mostly in Latin America. This state will continue until the end of the strike. Customers are being supplied from existing stocks in Zárate and with products from Merebank (South Africa). In addition, external production capacities are being utilised. 'So far the strike has had no effect on our customers', said Bernhard Wehling, head of the Leather business unit, the LANXESS unit affected by the strike. However, should the action persist, supply shortages cannot be excluded in spite of the measures taken by LANXESS. There is no change to the company's earnings forecast for the current fiscal year. On July 11, the Argentinean State Department for Labour ordered the strike to be abandoned and demanded compliance with the duty to maintain industrial peace during the phase of collective conciliation. However, to date the trade union has not responded to this demand. The LANXESS site at Zárate manufactures mainly chromium sulfate for the tanning of leather.

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