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November 06, 2015 01:00 AM

Lanxess to establish JV in China

Shahrzad Pourriahi
European Rubber Journal
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    Lanxess produces polychloroprene, marketed under Baypren brand, at its Dormagen site in Germany.

    CHONGQING,China—Lanxess A.G. and Chongqing Changshou Chemical will establish a 50-50 joint venture to serve as exclusive distributor of their polychloroprene products in China.

    The joint venture initially will concentrate on marketing and sales of chloroprene rubber and adhesive grades produced by both companies, Lanxess announced recently China.

    The transaction is still pending approval from relevant authorities and is expected to be completed in first half of 2016.

    The JV will combine Chongqing Changshou's sales channels and product range with Lanxess chloroprene offering, according to Jan-Paul de Vries, head of Lanxess' high performance elastomers business unit.

    “We are very pleased to ally with Lanxess,” said Xu Yaping, chairman of Chongqing Changshou Chemical, who said the JV can be a long-term strategic partners for customers.

    “Lanxess' know-how in safety, environmental protection, quality and applications will increase the competitiveness of the joint venture,” he added.

    Lanxess produces polychloroprene, marketed under Baypren brand, at its Dormagen site in Germany. It is typically used in cable sheathing, railway transport and vibration-isolation applications for its resistance to weathering, oil and heat and impermeability to gases.

    “China is the world's largest chloroprene rubber market. With the advancement of urbanization, the growth of the automotive industry and the continuous expansion of China's railway transportation network, local demands for polychloroprene are expected to keep growing in the long run,” said Ming Cheng Chien, CEO of Lanxess Greater China.

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