Specialty chemicals group Lanxess is taking steps to adjust its asset structure in India. Production facilities in Madurai, Tamil Nadu state, will be relocated to the company?s recently-opened site in Jhagadia, Gujarat state. This will affect facilities manufacturing leather chemicals, material protection products as well as products from Rhein Chemie.

Lanxess plans to relocate the new facilities to Jhagadia by the end of 2011. At the same time, the company plans to upgrade the facilities with the latest technology. At last month's 'Vibrant Gujarat' summit, Lanxess signalled its interest to make further investments at the 18-hectare Jhagadia site.

The contract with the Madurai site owners Penar will expire in June, 2011. Lanxess has had a strong partnership with the owners over the last six years. The majority of the workers at the site belong to Penar. Some twelve employees are on the Lanxess payroll and they will either continue to work for the company or find other options.

Joerg Strassburger, Managing Director and Country Representative of Lanxess India: "Our commitment to the growing Indian market is stronger than ever and we will do all we can to minimize any potential disruption to customers during the relocation."

Lanxess' site in Jhagadia represents an investment of EUR 60 million for the company to date. Production facilities for rubber chemicals and ion exchange resins are already in operation since 2010 and a high-tech plastics facility will start up later by 2012.