Lanxess to open new Chinese facility

09/03/2007
 
German chemical company Lanxess is building a new plant for the manufacture of lubricant additives in Qingdao, China. The production facility, which belongs to its subsidiary Rhein Chemie, will be operational by the fourth quarter of 2008 and will initially employ 50 people.

With an annual volume of around 4.4 million metric tons, the market for
lubricants in
China is approximately four times the size of Germany
’s. Annual growth is estimated at 8% and the industrial lubricants segment is likely to double by 2012.

The new facility will focus on the manufacture of customised additive formulations for lubricants. These are said to improve performance and service life in industrial applications and aid environmental protection by replacing the products currently used in
China
that impact on the environment.

Rhein Chemie has been producing rubber chemicals in
Qingdao
since 1999
within a joint venture. Capacity of polymer-bound chemicals (Rhenogran) was
doubled last year with the commissioning of a second production unit.

Lanxess currently has more than 800 employees in
China
, 160 of which work
for Rhein Chemie in
Qingdao
.