Site Development Lanxess Expands Production Site in Jhagadia

Editor: Wolfgang Ernhofer

Lanxess is continuing to expand its Indian production site in Jhagadia, Gujarat state. The specialty chemicals group is underlining its commitment to the subcontinent by inaugurating three new plants this month to serve the growing India market. Lanxess so far has invested over 70 million Euros in the production site of Jhagadia.

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Jhagadia is Lanxess' second largest production site in India. (Picture: Lanxess)
Jhagadia is Lanxess' second largest production site in India. (Picture: Lanxess)

Leverkusen/Jhagadia – Today, the company’s Semi-Crystalline Products business unit started production at the site’s new plant for high-tech plastics used by the automotive industry, including leading car manufacturers Tata Motors, Volkswagen and Ford.

Furthermore, the Material Protection Products business unit inaugurated a plant for biocides with a capacity of 2000 tons per year used in the construction industry. Lanxess subsidiary Rhein Chemie also started up a plant with a capacity of 2500 tons per year for release agents and additives used in the manufacturing of tires and rubber products. Both plants were relocated from a former site in Madurai, Tamil Nadu state, during the course of last year.

The site already includes a facility for ion exchange resins, used in water purification, and a rubber chemicals plant serving the tire and rubber processing industries. Both started up production in 2010.

Big Growth of Indian Economy

The Indian economy is expected to grow by eight percent this year, driven by strong demand for premium products for the automotive, tire and construction industries. Global automakers, as well as their suppliers, are already active in India and are investing in new plants on the subcontinent. The growing middle-class in India is driving the trend towards greater mobility. The country’s automotive industry is expected to grow by 9.5 percent this year.

Lanxess Invests in the Indian Business

Jhagadia is Lanxess’ second largest production site in India after its site in Nagda in Madhya Pradesh state. Jhagadia is a state-of-the-art, 18-hectare-site. Lanxess not only expanded its Jhagadia site this month, but also opened its new head offices in Thane, Maharashtra state. It will be home to 225 employees. Currently Lanxess employs roughly 860 people in India and achieved sales of 184 million Euros in the first nine months of 2011.