Lanxess China sales improve, full-yr outlook murky

SHANGHAI, June 11 (Reuters) - German specialty chemicals maker Lanxess AG (LXSG.DE) has seen its sales in the Greater China area improving in the past few months, but the outlook for the rest of the year remains murky, a senior executive said on Thursday.

Like most other players in the chemicals industry, Lanxess has been affected by the global financial crisis, with sales growth in Hong Kong, Taiwan and mainland China slowing to 15 percent last year from 23.4 percent in 2007, said Martin Kraemer, chief executive of the firm's Greater China operations.

Kraemer declined to give a forecast of its 2009 China sales, which came to 500 million euros ($701.7 million) in 2008, accounting for 44 percent of its Asia Pacific sales, but making up less than 10 percent globally.

"We have seen a pick-up in demand and also in sales in China over the last couple of months," Kraemer told Reuters on the sidelines of a company event.

"What we currently see is nice, but will that be sustainable till the end of the year? We don't know," he added.

Globally, Lanxess expected a decline in its operating profit and sales this year on a persistent slump in demand for synthetic rubber for cars and tyres. [ID:nL7365559]

Lanxess, whose global competitors include BASF (BASF.DE) and Degussa [RUHR.UL], acquired two inorganic pigments production facilities from a previous Chinese partner in mid-2008, marking its first acquisition in China.

It announced the acquisition of Jiangsu Polyols Chemical Co Ltd in eastern China, which makes trimethylolpropane, a material used in lubricants, paints and coatings.

Kraemer did not rule out more acquisitions in the country in the future, but said he saw little chance for "big transactions" currently. ($1=.7126 Euro)

(Reporting by Fang Yan and Jacqueline Wong)