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July 08, 2013 02:00 AM

Lanxess opens first Russian plant, begins in China

Rubber & Plastics News Report
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    LEVERKUSEN, Germany—Rhein Chemie, a subsidiary of Lanxess A.G., opened its first production facility in Russia. The site, in Lipetsk, southeast of Moscow, will manufacture polymer-bound rubber additives for the automotive and tire industries.

    Construction began in June, 2012.

    The company did not disclose an exact investment figure, but it said it totaled seven digits in Euros. Forty jobs will be created.

    Lanxess hopes to capitalize on a high demand in quality products from the Russian automotive and tire industries, said Anno Borkowsky, managing director of Rhein Chemie.

    The company said that it generated approximately $103 million from the Russian market in 2012, which is around four times as much as it generated when it first set up shop in 2009.

    The company also plans to add a production facility at the site for bladders used in tire production in 2016. The facility is projected to produce up to 80,000 Rhenoshape bladders.

    Lanxess just started for a premium iron oxide red pigments facility in Ningbo, China. The company is investing $70.8 million for a plant that will have the capacity of 25,000 metric tons per year.

    The company said construction is on schedule, and that it expects to introduce new red iron oxide pigments to the global markets by the first quarter of 2015. The plant will create 150 jobs in Ningbo.

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