Lanxess invests in EPDM plant in China
Lanxess is investing 235 million Euros (around Rs. 1984 crores) for building an EPDM (ethylene propylene diene monomer) plant in Changzhou (Jiangsu Province), China. This is the biggest investment made by the German specialty chemicals company in China till date. According to the company's statement, around 45 percent of the investment amount is likely to have been spent by the end of 2013. The construction is expected to get completed by end of 2014 and material production will begin in 2015.
The EPDM plant will have a production capacity of 160,000 metric tons per year. Once the new plant is completed, it is expected to create up to 200 new jobs. This new plant is a good business strategy for Lanxess as China is the world's largest market for EPDM, with majority demand coming from the automotive and construction industries.
"We are very happy with progress made so far and this plant clearly underlines our commitment to being closer to our customers and supplying them with premium products," said Torsten Derr, Head of the Keltan Elastomers business unit.
LANXESS currently has EPDM production plants in Netherlands, Germany, USA and Brazil. EPDM gets utilized in the automotive industry for applications like door sealants, hoses, belts or anti-vibration parts. The product is also used in the plastics modification, cable and wire, construction and oil additives industries. Its properties include very low density, good resistance to heat, oxidation, chemicals and weathering as well as good electrical insulation properties.
LANXESS is a leading specialty chemicals company with sales of EUR 9.1 billion in 2012 and roughly 17,500 employees in 31 countries. The company is currently represented at 52 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
