13.11.2009

LANXESS expands iron oxide production in Jinshan, Shanghai

 

 New plant with 10,000 metric tons of capacity for black iron oxide pigment
 Technical improvement project for yellow iron oxide pigment production
 Plant’s emissions to be reduced further by at least 15 percent,

 

Shanghai/Leverkusen, November 13, 2009 – German Specialty Chemicals Company LANXESS announced today it had broken ground for a new facility for the manufacture of black iron oxide pigments on its site in Jinshan, Shanghai. This new plant will go on stream in the 4th quarter of 2010 with an annual capacity of 10,000 metric tons. With the new facility, LANXESS also safeguards the raw material supply for its mixing and milling unit in Shanghai.

 

Additionally, LANXESS announced to start a technical improvement project for the existing yellow iron oxide pigments production to increase production efficiency and build even more environmentally friendly production capacity.

 

Martin Kraemer, CEO of LANXESS in Greater China, commented during a customer and media event: “With this additional investment, we are taking an important step to expand our production activities here in China – in the interest of our customers, our employees and our company.”

 

The technical improvements for the yellow iron oxide pigments are scheduled for completion in 2011 and will further reduce the plant’s emissions by at least 15%.

 

Dr. Wolfgang Oehlert, Chairman of the board of LANXESS Specialty Chemicals and Vice President of the company’s Inorganic Pigments activities in Asia Pacific, remarked: “This expansion will strengthen our position in the Asian markets for iron oxide pigments. Our production base here in Shanghai with its state-of-the-art technology will foster the further profitable growth of our business in these promising markets." 

 

The rising demand for inorganic pigments in China is partially driven by the ongoing boom in the construction business.  Important market segments for pigments are the construction industry, followed by the paints and coatings sector and the plastics and paper industries.

 

The Jinshan site was acquired by LANXESS in 2008 from its previous cooperation partner Jinzhuo Chemicals Company Ltd. The facility currently produces yellow iron oxide pigments with an annual capacity of some 30,000 metric tons.  With the new black workshop and the improvement project, LANXESS is continuing its string of extensive investments in China.

 

The LANXESS’s Inorganic Pigments business unit is one of the world’s leading iron oxide pigment manufacturers and produces of iron oxide and chrome oxide pigments with an annual capacity of approx. 350,000 tons at its facilities in Europe, Brazil, Asia, the United States and Australia,. With its world-scale production sites LANXESS operates the most advanced global manufacturing network for iron oxide pigments in the world. The business unit currently employs some 350 people in China.  

 

LANXESS is a leader in specialty chemicals with sales in 2008 of EUR 6.58 billion and currently 14,335 employees in 23 countries. The company is represented at 46 production sites worldwide. The core business of LANXESS is the development, manufacture and sale of plastics, rubber, intermediates and specialty chemicals.

Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

 

Information for editors:

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