German specialty chemicals company Lanxess AG is building a new production plant for high-performance plastics in Changzhou, China, in a bid to strengthen its presence in the fast growing Chinese market.
The Cologne-based company announced Nov. 23 that the 20 million euro ($23.8 million) compounding plant is expected to start production in the second quarter of 2019, with the capacity to produce up to 25,000 metric tons of Durethan- and Pocan-branded high-performance plastics for the automotive sector and the electric and electronics industry.
With the investment, Lanxess is “significantly strengthening” the Changzhou site at the Binjiang Chemical Park in Changzhou, where the group already has plants for leather chemicals and synthetic rubber.
“China is the largest automotive market in the world and is setting the pace for electromobility. We want to support growth in this important region and are expanding our presence in the high-performance plastic segment,” said Matthias Zachert, Lanxess chairman at a press conference in Shanghai.
Lanxess already operates a plant for high-performance plastics in Wuxi, China.
Citing various studies, Lanxess said around one in four of the approximately 85 million cars sold around the world this year will be sold in China. The figure is expected be one in three in 2025.
Lanxess also expects an annual growth of 9 percent until 2021 in the electric and electronics industry.