Lanxess’ new high-tech plastics unit goes on stream

Speciality chemicals group Lanxess is continuing to expand its Indian production site in Jhagadia, Gujarat. On January 31, it inaugurated three new plants to serve the growing India market. Lanxess has invested over 70 million euros and created roughly 300 new jobs at the site.

The company’s Semi-Crystalline Products business unit started production at the site’s new plant for high-tech plastics used by the automotive industry, including Tata Motors, Volkswagen and Ford.

Lanxess is tapping into India’s growth with its flagship brands for high-tech plastics Durethan (polyamide) and Pocan (polybutylene terephthalate), which represent a lighter-weight plastic alternative to metals. In addition, they enable carmakers and car parts suppliers to realize considerable savings by providing less costly production methods and easier assembly.

The company will be showcasing its high-tech plastic products and innovative technologies at a 300-square-metre-booth at the Plastindia Exhibition from February 1 to 6. Axel C Heitmann, Chairman of the Board of Management, and Board Member Werner Breuers will be attending.

Meanwhile, Lanxess subsidiary Rhein Chemie also started up a plant for release agents and additives used in the manufacturing of tyres and rubber products. Both plants were relocated from a former site in Madurai, Tamil Nadu, during the course of last year. The site already includes a facility for ion exchange resins, used in water purification, and a rubber chemicals plant serving the tyre and rubber processing industries. Both started up production in 2010.

Rhein Chemie will produce the pre-dispersed rubber additive Rhenogran and the environmentally-friendly release agent Rhenodiv in Jhagadia. Rhenogran is used in the production of tyres and other rubber products. Rhenodiv is used to prevent rubber vulcanizates from sticking to their moulds, thus enabling smooth, automated processes. The annual combined production capacity of the plant is 2,500 metric tonnes.

“Lanxess is heavily investing in the Indian subcontinent and this commitment has already paid off: We surpassed our 2010 sales already in the first nine months of 2011,” said Werner Breuers, Member of the Board of Management of Lanxess, at the inauguration ceremony. “By concentrating many of our assets in Jhagadia, we are creating a specialty chemicals hub catering to the booming local market and the Asia region – and there is potentially further room at the site for expansion.”

The Indian economy is expected to grow by eight percent this year, driven by strong demand for premium products for the automotive, tyre and construction industries. Global automakers, as well as their suppliers, are already active in India and are investing in new plants on the subcontinent. The growing middle-class in India is driving the trend towards greater mobility. The country’s automotive industry is expected to grow by 9.5 percent this year.

State-of-the art site

Jhagadia is Lanxess’ second largest production site in India after its site in Nagda in Madhya Pradesh. Jhagadia is a state-of-the-art, 18-hectare-site and the production facilities have been set up with the most recent technology. It also offers many geographical advantages for it has excellent links to international ports, which ensures a reliable supply of raw materials for the production facilities as well as rapid delivery to customers outside India.