Lanxess AG is adding compounding capacity for specialty resins at a site in China.
The new line will be the second in Changzhou for Cologne, Germany-based Lanxess. The line will be used to make compounds based on Durethan-brand nylon 6 and Pocan-brand polybutylene terephthalate (PBT).
Lanxess is investing about 30 million euros ($33.6 million) in the project, which will increase the site's compounding capacity by almost 70 million pounds per year.
The new line will be operational in early 2023, bringing total compounding capacity for Lanxess in China, including a site in Wuxi, to more than 240 million pounds per year.
"This expansion caters to the strong demand we experience from the growing Chinese automotive industry," Management Board Member Hubert Fink said in a news release.
"As e-mobility is booming, it is driving new requirements for lightweight applications and continuously increases the share of electronic components used in cars," he added. "The new production line marks another vital step in enlarging our footprint in greater China."
Durethan and Pocan can be used in automotive parts to reduce weight, energy consumption and related emissions, according to Lanxess. Applications include engine applications, door structures, body reinforcement, pedals, front ends and cross car beams. Depending on the part, officials said the lightweight design contributes to a weight-saving of up to 50 percent.
At the Fakuma 2021 trade show in October, Lanxess announced a partnership with energy company BP plc to use sustainably produced cyclohexane in Lanxess' nylon 6 production. BP will supply the cyclohexane to a Lanxess production site in Antwerp, Belgium, by the end of the year.
Lanxess is a maker of specialty chemicals and plastics that employs 14,900 and posted sales of 6.1 billion euros ($6.8 billion) in 2020.