Lanxess Expands Plant for Inorganic Pigments in China
Specialty chemicals group Lanxess AG, Cologne, Germany, is strengthening its production network in China to meet the high level of demand for iron oxide pigments and is adding a mixing and milling plant to the pigment plant already under construction in Ningbo. LANXESS is creating a total of roughly 200 new jobs with these two plants. Potential customers for the iron oxide pigments are the coatings, plastics, construction and paper industries. This brings the total investment at the Ningbo site from around EUR 55 million to around EUR 60 million.
The new plant for iron oxide red pigments in Ningbo, which has been built to the latest environmental standards, is being designed for an initial annual synthesis capacity of 25,000 metric tons. On the same site, Lanxess is building the mixing and milling plant for pigments with an annual capacity of 70,000 metric tons. This plant will also process raw pigments from other Lanxess sites for the Asian market. The plants are scheduled to be completed in the fourth quarter of 2015 and to start production in the first quarter of 2016.
At the same time, Lanxess will close its existing mixing and milling operations in Taopu, Shanghai, China, with an annual capacity of 35,000 metric tons by the end of 2016. Shanghai City Council will be integrating the vacated plant grounds into a high-tech park in Shanghai’s Putuo District.
With an annual capacity of over 350,000 metric tons, Lanxess’ Inorganic Pigments business unit (IPG) is one of the world’s leading manufacturers of inorganic iron oxide and chrome oxide pigments. The center of global production operations is Krefeld-Uerdingen in Germany. This business unit has some 1,250 employees and is part of the Performance Chemicals segment. China plays a key role in Lanxess' global growth strategy. All its business units are represented, with a total of around 1,000 employees at twelve sites in Greater China. In 2013, the company generated sales of some EUR 1 billion in this region.
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