Lanxess invests 235 million euros in Chinese rubber facility

Rubber supplier Lanxess has announced plans to make its biggest investment in China to date with the construction of a 235 million euro, 160,000 tonne a year synthetic rubber plant. The factory, which will be situated in Changzhou, Jiangsu Province, will specialise in the production of EPDM synthetic rubber, which is used largely in the automotive and construction industries.

All necessary permits have already been obtained from the local authorities so the plant is expected to start up 2015. The investment will reportedly create up to 200 new jobs.

Around 7 kilos of EPDM is used in each car produced, predominantly in components such as sealants and windscreen wipers. However while this plant will not make materials directly related to tyre production, it does give an indication of this major supplier to the tyre industry’s ongoing strategy.

“This plant also represents our company’s third major rubber investment in Asia and strengthens our credentials as the world’s leading provider of synthetic rubber,” said Lanxess CEO Axel C. Heitmann at the groundbreaking of the EPDM plant.

Lanxess will start up a world-scale butyl rubber plant on Singapore’s Jurong Island in the first quarter of 2013 and was scheduled to break ground for a neighbouring neodymium-based performance butadiene rubber plant on 11 September.

Nevertheless China is said to be a cornerstone of Lanxess’ global growth strategy. The company is targeting sales of more than 1 billion euros in Greater China (mainland China, Hong Kong, Taiwan and Macao) in 2012. All of Lanxess’ 13 business units are represented at 10 sites in Greater China, with roughly 1,000 employees in total.

In addition the news of the factory was released the same week of Lanxess first-ever “Mobility Day” in Shanghai on September 6. Under the motto “Sustainable Technologies for China’s Future”, the company will be showcasing its latest products geared towards “Green Mobility”.

Around 400 participants from industry, academia and associations will exchange ideas and discuss topics such as “Green Tires”, lightweight plastics, sustainable leather management, technical rubbers and battery technology.