Pigments Lanxess to Build new Pigment Plant in China
German specialty chemicals company Lanxes is expanding its global production network for inorganic pigments in China. A new high-tech facility for premium iron oxide red pigments is being constructed at the Ningbo Chemical Park on the Chinese East Coast.
Leverkusen/Germany, Ningbo/China – The pigment plant will initially have an annual capacity of 25,000 metric tons. The investment of about EUR 55 million will create 150 new jobs. Construction will begin in the second quarter 2013. The production startup is scheduled for the first quarter of 2015.
The megatrend urbanization has created an increasing demand for high quality, sustainably produced pigments throughout the world.
Ningbo, located in the coastal province of Zhejiang, is China's second largest cargo port. The location for the new plant is the Ningbo Petrochemical Economic & Technological Development Zone (NPEDZ). The new Lanxess site will initially cover roughly seven hectares. A further plot of similar size has been reserved for potential expansion.
The highlights of the industrial area are the outstanding infrastructure and logistical links. The largest terminal for liquid chemicals in China is located there.
Pigment production in Ningbo
Lanxess will manufacture high quality iron oxide red pigments at the new plant using an improved and highly sustainable Penniman process.
The company will market their yellow shaded red pigments globally under the brand Bayferrox. Key customers are manufacturers of paints and coatings. Furthermore the construction and plastics industries will be supplied.
Lanxess already operates one of China’s largest plants for iron oxide pigments in Jinshan, Shanghai. This plant has an annual capacity of 38,000 metric tons of high-quality iron oxide yellow and black pigments each year.
With an annual capacity of more than 350,000 metric tons, the Lanxess Inorganic Pigments (IPG) business unit is one of the world's leading manufacturers of inorganic iron oxide and chromium oxide pigments. The heart of global production is located in Krefeld-Uerdingen, Germany. The business unit has close to 1,300 employees and is part of Lanxess’ Performance Chemicals segment.
China plays a key role in Lanxess' global growth strategy. All 14 business units are represented with a total of around 1,000 employees at the 10 sites in Greater China. It represents about 10 percent of Lanxess’ Group sales.
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