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Lanxess plans more investments in China

The German specialty chemicals company Lanxess announced that it signed a Memorandum of Understanding (MOU) with Shanghai Chemical Industry Park (SCIP) in September to reserve land for an integrated production site. Furthermore, the company is planning to establish an Application Development Center for the Asia-Pacific region in Shanghai.

Lanxess plans more investments in China

The investment plans are supported by gratifying financial results in the third quarter. While the Lanxess Group achieved stable operating results again, Greater China recorded double-digit growth in its EBITDA pre exceptionals. Business with flame retardants and additives, water purification products and biosecurity products was particularly strong.
 
Integrated APAC Application Development Center (AADC) in Shanghai
By signing the MOU with SCIP in September this year, Lanxess has reserved 20 ha of land to set up an integrated site as a new base for sustainable growth in China. The company also plans to set up an integrated APAC Application Development Center (AADC) in Shanghai. This comes as the need for localized product grades increases due to shifting demand toward value added products in China. With local innovation already making up a large share of new business, the AADC will further strengthen innovation capabilities in China and the Asia-Pacific region.

Ming Cheng Chien, President of the Lanxess Asia-Pacific Region said:

“We are confident in China’s future growth potential. The country’s chemical market is a key pillar in the region. It is already the largest in the world, and by 2030 will account for almost 50% of all global chemical sales. Our investments will help us meet the growing market demand here. In addition, they express our deep commitment to support China in realizing High Quality Development.”

The planned investments are part of Lanxess’s growth initiative in Asia. To promote synergies between countries and business units, the company in 2018 launched a new regional setup in the Asia-Pacific region covering Greater China, Japan, South Korea and the ASEAN countries. The same year it announced that it will invest about EUR 250 million in Asia-Pacific by 2023, with the majority intended for the Chinese market. Marking a first milestone, Lanxess started in September this year operations of a new production facility in Changzhou for high-tech plastics enabling New Mobility.

Companies: Lanxess Group

Countries: China, Japan, South Korea

Terms: Asia-Pacific, Business

Via
This article has been edited by Basalt.Today
Source
This article has been written on JEC Composites Magazine
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