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Lanxess Invests €20m in New Chinese Compounding Plant

28 November 2017

Lanxess is investing around €20 million to construct a new compounding plant for high performance plastics in Changzhou, China.

Scheduled to start operations in the second quarter of 2019, the facility will have the capacity to produce up to 25,000 tonnes of Durethan and Pocan branded products for the automotive sector and the electric and electronics industry.

Lanxess already operates a high performance plastics plant in Wuxi, China.

“China is the largest automotive market in the world and is setting the pace for electromobility," says Matthias Zachert, Chairman of the Lanxess Board of Management. "We want to support growth in this important region and are expanding our presence in the high performance plastic segment.”

Lanxess says that according to studies, around one in four of the approximately 85 million cars sold around the world this year will be sold in China. This figure is expected be one in three in 2025. The electric and electronics industry also offers a great deal of potential in China, where Lanxess expects annual growth of around 9% to 2021.

“At the same time, we are expanding our global network of compounding plants with the new production site and are continuing to consistently focus our portfolio on high-value plastics,” reports Michael Zobel, Head of the High Performance Materials business unit at Lanxess. 

With this investment Lanxess is also significantly strengthening the Changzhou site. At the Binjiang Chemical Park in Changzhou the group already has plants for leather chemicals and synthetic rubber, which currently employ around 350 people. The new plastics plant will create 35 additional jobs. 

The automotive industry is the biggest market for Lanxess’ high performance plastics, where the company's products are used in engine applications, door structures, pedals, front ends and cockpit cross members. There are also many applications for Lanxess plastics in hybrid and electric vehicles, some of which are already in mass production. These include components for charging systems, carriers and cell holders for battery systems as well as sensors and housing parts for electric motors. 






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