Leather Chemicals Start up of Lanxess Leather Chemicals Production in China
Lanxesss starts up the production of leather chemicals at new 50,000 ton–per–year–plant in the Changzhou Yangtze Riverside Industrial Park. According to company speakers, the plant is the largest of its kind in China and will strengthen the company’s position as a sustainable leather chemicals provider in the local market.
Changzhou/PR China – “This plant will enable us to respond quickly and effectively to the industry’s constant need for the complex, innovative and sophisticated chemicals that are vital for the preparation and finishing of the finest leather products,” said Axel C. Heitmann, Chairman of the Board of Management of Lanxess. The company has invested around € 30 million in the facility, which employs about 150 people.
The plant will produce the full range of Lanxess leather chemicals for the local Chinese market. China is the world’s single largest leather chemical market. The country has become the world’s largest producer of leather products and one of the major consumers. Above all, the market for automotive leather is expected to grow strongly in the coming years.
Major Investment Projects in Changzhou, Jiangsu Province
At the Changzhou site next to the leather chemical plant, Lanxess is currently constructing a plant for EPDM rubber. This plant worth an investment of € 235 million represents the largest investment the company has made in China to date. Construction work is going according to plan.
To further support the development of innovative products and applications, the company has entered into an agreement with Changzhou National Hi-Tech District to additionally invest about € 35 million in order to extend the research and development center as well as the facilities for the storage and transportation of chemical products.
China Cornerstone in Lanxess Strategy
“This further investment shows our confidence in the development in Changzhou. The city will become an important production hub for Lanxess to provide high-quality materials and tailor-made products in response to the specific needs of local customers,” said Chien Ming Cheng, CEO of Lanxess Greater China.
China is a cornerstone of Lanxess' global growth strategy. The company achieved sales of more than EUR 1 billion in Greater China (mainland China, Hong Kong, Taiwan and Macao) in 2012. All of Lanxess’ 14 business units are represented at 11 sites in Greater China, with roughly 1,000 employees in total.
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