Lanxess is continuing the expansion of its production site in Jhagadia in Gujarat. The specialty chemicals group broke ground for new compounding facilities with an initial capacity of 20,000 metric tonnes per year. These facilities will start produ
Lanxess is continuing the expansion of its
production site in Jhagadia in Gujarat. The specialty chemicals group broke
ground for new compounding facilities with an initial capacity of 20,000 metric
tonnes per year. These facilities will start producing the high-tech plastics
Durethan (polyamide) and Pocan (polybutylene terephthalate) at the beginning of
2012. The investment of more than EUR 10 million will create 60 new jobs.
"Jhagadia provides the perfect platform to strengthen our position as a premium
supplier to our customers not only in the rapidly-growing local market but also
in the Asia-Pacific region," said Rainier van Roessel, Lanxess Board
Member at groundbreaking ceremony.
India is on course to become the third largest consumer market for high-tech
plastics after the United States and China, driven by the automotive industry
that is set to grow by more than six percent per year. Global automakers, as
well as their suppliers, are already active in India or are investing in new
plants in the subcontinent. It is above all the growing middle-class in India
that is driving the trend towards greater mobility.
The automotive industry is the largest customer for the Semi Crystalline
Products (SCP) business unit, which produces Pocan and Durethan. These highly
innovative products represent a lighter-weight plastic alternative to metals. In
addition, Pocan and Durethan enable carmakers and car parts suppliers to make
considerable savings through cheaper production and easier assembly.
"It is more than fitting that today?s groundbreaking event marks the kick-off of
Lanxess? Year of High-Tech Plastics, ?said Michael Zobel, head of the
Semi-Crystalline Products business unit. ? Lanxess? high-tech plastics not only
support the trend towards greater mobility but also make cars safer and reduce
fuel consumption due to their outstanding properties.?
The Jhagadia site has many geographical advantages for Semi-Crystalline
Products. It is located between two of India?s largest automotive hubs Pune and
New Delhi, which are home to numerous plants operated by the business unit's
customers. Excellent links to international ports will ensure a reliable supply
of feedstock to the compounding facilities and fast delivery to customers
outside India. The state of Gujarat is also one of India?s leading chemical
regions and has a strong pool of highly skilled technicians and engineers.
Lanxess? Rainier van Roessel, as well as
the company?s country representative for India, J?rg Strassburger, took part at
the ?Vibrant Gujarat? summit held in Gandhinagar from January 12-13. Van Roessel
signed a memorandum of understanding with local officials for the high-tech
plastics investment and signaled interest that Lanxess is considering
further investments by other business units in Jhagadia.
"The investment in the compounding facilities in addition to our new ion
exchange resins plant speaks volumes about our commitment to India. We are
riding the growth wave and are focused towards our customers locally and in Asia
Pacific, who will be served by these new plants," added Dr. Joerg Strassburger,
Managing Director and Country Representative, Lanxess India.
Including the new compounding facilities, Lanxess has invested to date
about EUR 60 million in the 13-hectare Jhagadia site. A new facility for ion
exchange resins as well as a rubber chemicals plant both started up production
in 2010. LANXESS currently employs around 230 people in Jhagadia.
The Jhagadia site will strengthen SCP?s presence in the Asia-Pacific region. The
business unit is currently lifting capacities at its compounding plant in Wuxi,
China, to approximately 60,000 metric tons per year by mid-2011.
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