SHANGHAI ,April 26-Germany s Lanxess AG continues to boost production capacity at its 4-year-old compounding plant in Wuxi, China, where it makes semi-crystalline thermoplastics.
Officials for the Leverkusen-based firm said at the Chinaplas show in Shanghai that Lanxess (Wuxi) Chemicals Co. Ltd. will invest in a third production line that will boost capacity there by nearly half, to about 132 million pounds a year. The new line should be on stream by mid-2011.
This investment will serve the growing demand from Chinese and Asian customers for premium, high-performance plastics, mainly driven by the booming automotive industry, Lanxess Chairman and CEO Axel C. Heitmann said in a prepared statement. The Wuxi plant s product lines include Durethan-brand nylon 6 and 6/6 and Pocan-brand polyester polybutylene terephthalates.
The company noted that China is now the world s largest automotive market, with unit sales projected to rise by 8 percent to more than 14 million vehicles this year.
While officials did not mention how much this latest expansion would cost, previous reports indicate the 2006 start-up of the venture involved an investment of some 20 million euros (or about $27 million at that time).
Lanxess employs approximately 1,000 in Greater China, which accounted for sales of 584 million euros ($779 million) in 2009.
Heitmann said: Thanks in large part to continued growth in China, our group earnings are expected to be significantly higher than in 2009. The first months of 2010 already have shown strong double-digit growth for sales in China. Our outlook remains positive as customers continue to place substantial orders.
Officials for the Leverkusen-based firm said at the Chinaplas show in Shanghai that Lanxess (Wuxi) Chemicals Co. Ltd. will invest in a third production line that will boost capacity there by nearly half, to about 132 million pounds a year. The new line should be on stream by mid-2011.
This investment will serve the growing demand from Chinese and Asian customers for premium, high-performance plastics, mainly driven by the booming automotive industry, Lanxess Chairman and CEO Axel C. Heitmann said in a prepared statement. The Wuxi plant s product lines include Durethan-brand nylon 6 and 6/6 and Pocan-brand polyester polybutylene terephthalates.
The company noted that China is now the world s largest automotive market, with unit sales projected to rise by 8 percent to more than 14 million vehicles this year.
While officials did not mention how much this latest expansion would cost, previous reports indicate the 2006 start-up of the venture involved an investment of some 20 million euros (or about $27 million at that time).
Lanxess employs approximately 1,000 in Greater China, which accounted for sales of 584 million euros ($779 million) in 2009.
Heitmann said: Thanks in large part to continued growth in China, our group earnings are expected to be significantly higher than in 2009. The first months of 2010 already have shown strong double-digit growth for sales in China. Our outlook remains positive as customers continue to place substantial orders.
