Lanxess AG, the German maker of synthetic rubber that has lost 29 percent in Frankfurt trading this year, plans to buy back as many as 250,000 shares for its employees at the beginning of July.
The shares will be bought on the Frankfurt exchange between July 1 and 8, the Leverkusen, Germany-based company said today in a statement. The buyback is valued at 11.7 million euros ($15.3 million) based on yesterday’s closing price.
Lanxess, which generates 40 percent of sales from the tire and auto industries, has suffered as European car sales have slid to a 20-year low and the European debt crisis weighs on construction spending. The chemical maker yesterday said it will close a plant in South Africa and is consolidating production of vulcanization accelerators in the U.S. and Belgium, leading to the loss of about 85 jobs.
Lanxess shares gained as much as 1.9 percent to 47.50 euros and were trading 0.4 percent higher as of 9:42 a.m. local time.