China: High-Tech Engineering Plastics Why is Lanxess Investing More than 30 Million Dollars in China?

From Ahlam Rais

With a strong demand for high-tech plastics in China, Lanxess has invested 34 million dollars in China to expand its production in the region. The company aims to develop a second compounding line for its Durethan- and Pocan-branded high-tech engineering plastics at its manufacturing site in Changzhou which is expected to increase the site’s capacity by 30,000 metric tons per year.

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Together with existing facilities in Changzhou and Wuxi, this will bring the company’s total compounding capacity in China to 110,000 metric tons per year.
Together with existing facilities in Changzhou and Wuxi, this will bring the company’s total compounding capacity in China to 110,000 metric tons per year.
(Source: Lanxess)

Cologne/Changzhou – Lanxess will expand its production network in China: The specialty chemicals company will build a second compounding line for Durethan- and Pocan-branded high-tech engineering plastics at its manufacturing site in Changzhou. An important investment of around 34 million dollars will increase the capacity in Changzhou by 30,000 metric tons per year. Together with existing facilities in Changzhou and Wuxi, this will bring the company’s total compounding capacity in China to 110,000 metric tons per year. The new line is planned to go on stream in the first quarter of 2023.

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Polyethylene is one of the most widely used plastic resins in the world, accounting for over 1/3rd of the global plastics market.

While the market has been growing in the past, it is now experiencing a reduction in price that can be traced back to several factors including trade disputes, bans on single use plastics as well as overproduction. These factors are further exacerbated by the recent outbreak of COVID-19, which has an effect on the global economy.

This 11-page Expert Insight further explores reasons for the decline as well as possible strategies to mitigate these problems.

Lanxess sees e-mobility as a major field of application for its polyamide (PA) 6 and PA 66 compounds Durethan, polybutylene terephthalate (PBT) compounds Pocan and the endless fiber-reinforced composites Tepex. Durethan and Pocan high-performance plastics also allow the construction of components that can replace metal parts in motor vehicles and in this way contribute to reducing weight, energy consumption and related emissions. The innovative materials are used, for example, in engine applications, door structures, body reinforcement, pedals, front ends and cross car beams. Depending on the part, the lightweight design contributes to a weight-saving of up to 50 per cent.

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