Market Development Investment Lanxess Announces Investments in China
German chemicals company Lanxess invests in several Chinese projects. China is key pillar of Lanxess' strategy, CEO Heitmann says.
Leverkusen/Germany – Leather, plastics, technology expertise: Lanxess invests on the Chinese market with all guns blazing. Axel Heitmann, CEO of the German chemical company announced investments of about EUR 40 millions. “China remains one of the fastest growing markets in Asia and a key pillar of our mid-term growth strategy,” Heitmann commented.
This week, the groundbreaking ceremony for 50,000 tons per year leather chemicals plant in Changzhou/China, in which Lanxess invests some EUR 30 millions, was held. The facilities are expected to become productive in 2013, producing chemicals for leather tanning, dyeing and finishing applications. China is the largest market for leather chemicals worldwide, with steady growth expected in the coming years.
In Wuxi, where Lanxess operates a polymer production, a third production line while be going online this week. This EUR 10 million investment increases the total capacities at the plant to 60,000 metric tons per year, Lanxess says. The plant produces the lightweight plastics Durethan and Pocan that can replace heavier metal parts for the production of automobiles. China is the world’s largest automotive market, and is expected to grow by nine percent this year.
To strengthen its commitment on the Chinese market for the future, Lanxess opens a technology centre in Qingdao, Shandong province, next week. The center shall supply analytical, technical and consultancy services for the Chinese beverage industry. Lanxess expects to profit from its expertise in sterilization agents for non-alcoholic beverages and wines, since the Chinese beverage market is expected to become the world’s largest in the next decade.