Lanxess, a specialty Chemicals Company based in Cologne, Germany is building a new plant for the production of high-performance plastics in Changzhou, China with the investment of €20m ($23.68 million). The company is strengthening its existence in the fast-growing Chinese market.
The Germany-based Lanxess announced 23 Nov that the new plant is scheduled to begin production from the second quarter of 2019 and it will produce 25,000 metric tonnes of Durethan and Pocan branded high- capability plastics.
These high-performance plastics can be used for the automotive sector, electric industries as well as electronics industries.
According to Matthias Zachert, Lanxess management board’s chairman, China is moving rapidly towards electromobility as it is world’s biggest automotive market. So, considering the growth of the China, Laxness want to contribute as a support in this important region and expand its existence in the high-tech plastic segment.
The Cologne-based company already has a plant for high-performance plastics operating in Wuxi, China. The electric and electronics industry expects annual growth of around nine percent till 2021 in China.
Automotive industries are already using Lanxess’ plastics to replace metal parts in motor vehicles and therefore it’s contributing to reductions in weight, fuel consumption and emissions.
Lanxess’ High-Performance Materials business unit Head Michael Zobel says, “At the same time, we are expanding our global network of compounding plants with the new production site and continuing to implement the strategic focusing of our portfolios on highly refined plastics in a consistent manner.”
Currently, the company has around 350 employees working on its own leather chemicals and synthetic rubber plants at the Binjiang Chemical Park in Changzhou.
The new plastics plant will create 35 new additional jobs and will boost the existence of the company in the region.