Workers Halt Lanxess Leather Chemical Production In Argentina | Chemical & Engineering News
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Web Date: July 16, 2007

Workers Halt Lanxess Leather Chemical Production In Argentina

Company may ration supplies to South American customers until strike ends
Department: Business

Unionized workers striking for higher pay since July 7 have forced the shutdown of Lanxess' leather chemicals production unit in Z??rate, Argentina. Lanxess says it may soon have to ration supplies of leather chemicals to Latin American customers because of tightening supplies.

The German chemicals maker produces the leather tanning agent chromium sulfate in Zárate and says it will continue to supply Latin American customers from existing stocks there and with imports from its plant in Merebank, South Africa.

"So far, the strike has had no effect on our customers," says Bernhard Wehling, head of the leather business unit. "Should the action persist, supply shortages cannot be excluded," he says.

Lanxess says that the regional chemicals trade union also struck 14 other companies in the cities of Z??rate and Campana. According to press reports, strikers shut down the methyl tert-butyl-ether maker Carboclor, polyethylene terephthalate maker Eastman Chemical, and carbon black maker Cabot. Strikers also walked out at Petrobras Energia, a unit of Brazil's Petrobras, which operates ammonia and polystyrene units in the two cities.

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