Breaking New Ground

Defense – A Market Stepping Out of the Shadows

For a long time, the defense sector was seen as a no-go area in Europe. But since Russia’s war of aggression, the landscape has fundamentally changed. European defense spending is rising at a rate not seen in decades – and in Europe alone, some 800 billion euros will be spent in the coming years on modernization, equipment procurement, and infrastructure. This amount is derived from national special funds, increased defense budgets, and long-term NATO commitments.

With its Bundeswehr Procurement Acceleration Act (BwBBG), Germany has also sent a clear signal: procurement processes need to become faster, more transparent, and less bureaucratic. For the industry, this means that the government wants things to move quickly – and it needs reliable partners. For LANXESS, this means access to a market that has long remained off-limits, even though our products are already being used in security-critical applications today.

Opportunities for LANXESS:
•    Access to a rapidly growing European market with significant pent-up demand
•    Accelerated procurement processes thanks to the BwBBG – new partnership opportunities
•    A broad product range with direct relevance; the first BUs are already supplying products (lubricants for hydraulic systems, products for disinfecting and treating drinking water)
•    Focus on supply reliability rather than price pressure – European suppliers are gaining strategic importance

What’s happening right now:
•    Three workshops have been held with the relevant BUs since the beginning of December.
•    Next steps: Create market and supply chain transparency, systematically screen our portfolio, and present ourselves as ONE LANXESS.