NANTONG, China (May 7, 2010)—Lanxess A.G. and Taiwan's TSRC Corp. are entering into a 50/50 joint venture in China to produce nitrile rubber at a new plant in Nantong, the companies announced today.
The companies are jointly investing $50 million in the operation, to be called Lanxess-TSRC (Nantong) Chemical Industrial Co. Ltd. The new facility, located northwest of Shanghai, will have an initial capacity of 30,000 metric tons per year and serve the Chinese market with high-quality NBR grades, the firms said.
Groundbreaking for the site is scheduled for September, with production expected to start up in the first half of 2012. Marketing activities of the venture will begin this summer.
The joint venture will serve Chinese customers with NBR produced at Lanxess' La Wantzenau plant in France — the world's largest NBR site—until the Nantong plant opens.
“The Chinese NBR market is the fastest growing in the world, boasting double-digit growth rates,” said Werner Breuers, a member of Lanxess' management board. “The partnership brings us a step closer to our customers and opens the door to further tie-ups in the emerging Asian market in the future.”
TSRC CEO Wei-Hua Tu called the companies' partnership a win-win combination, bringing together TSRC's long-history of engineering and production know-how in China with Lanxess' marketing and technical expertise in synthetic rubber.
Lanxess is based in Leverkusen, Germany, and TSRC in Taipei.