Download 2011-00042e

LANXESS to expand global production network
for high-tech plastics
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LANXESS breaks ground on new compounding
facility in the U.S.
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Joint venture between LANXESS and DuPont to
double capacity in Germany
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Recent investments for high-tech plastics reach
Euro 75 million
Leverkusen/Pittsburgh – LANXESS is expanding its global
production network for high-tech plastics. The specialty chemical
company broke ground today on a new compounding facility in the
United States. Additionally, LANXESS and U.S. chemical company
DuPont will double the capacity of their joint compounding facility in
Hamm-Uentrop, Germany.
The capacity expansions reflect the growing demand for high-tech
plastics being driven above all by rising car production and the trend
towards lighter automobiles. The global demand for high-tech plastics
is expected to increase by roughly seven percent per year through
2020.
Groundbreaking for first production facility in North Carolina,
USA
The new production facility in Gastonia, North Carolina, will have an
initial capacity of 20,000 metric tons per year. It will be the first
compounding facility for the LANXESS high-tech plastics Durethan
and Pocan in the United States. Basic polymers, such as polyamide
and polybutylene terephthalate, are mixed and refined with additives
in the compounding facility to produce Durethan and Pocan as per
customer needs.
The facility represents an initial investment of Euro 10 million and is
expected to create up to 55 new jobs locally. Construction is
expected to commence in the second quarter of 2011 and production
is scheduled to begin in 2012.
“The U.S. is the largest market for high-tech plastics, with the
automotive industry at the forefront. It is here that increased CAFE
fuel efficiency standards are driving demand for these advanced
materials,” said Werner Breuers, Member of the Board of
Management of LANXESS.
The Corporate Average Fuel Economy (CAFE) regulations aim to
improve the average fuel economy of cars and light trucks sold in the
United States.
The automotive industry is the largest customer for the
Semi-Crystalline Products (SCP) business unit, which produces
Durethan and Pocan. These highly innovative products allow for the
design of lighter-weight plastic parts to replace metal parts in
automobiles, contributing to fuel efficiency and reduced emissions. In
addition, Durethan and Pocan enable carmakers and car parts
suppliers to achieve considerable savings through cheaper
production and easier assembly.
Doubling of compounding capacity in Hamm-Uentrop, Germany
LANXESS and U.S. chemical company DuPont plan to double the
capacity of their joint compounding facility for polybutylene
terephthalate (PBT). The partner companies will invest an extra Euro
10 million in the facility in Hamm-Uentrop, Germany. The expansion
is expected to create nine new jobs in addition to the 70 positions
already in existence. Production is scheduled to begin in 2012. The
plant is one of the largest of its kind in the world and was opened in
2004.
“This capital investment is the two partners’ response to the mounting
worldwide demand for PBT compounds. This growth is being driven
by the global automotive and electrical/electronic industries, where
sales of these high-performance thermoplastics are growing not only
organically but also as a result of the many new and innovative
applications,” said Michael Zobel, head of business unit
semi-crystalline products at LANXESS.
The strengths of PBT are its high rigidity, impact strength and heat
resistance. It is an electrical insulator, resistant to abrasion and wear,
and has outstanding dynamic load strength. Typical applications
include plug connectors, lamp sockets and engine housings. A new
field of application with particularly good growth prospects is that of
large-sized add-on parts for truck cabs, such as fenders, wind
deflectors and radiator grilles. Special PBT grades with a high
content of glass fibers for even greater rigidity are playing an
increasingly important role in the substitution of metals and
thermosetting plastics.
Global high-tech plastics production network
LANXESS has made a series of investments in its global high-tech
plastics network in the last 12 months. In January, 2011, LANXESS
broke ground on a new facility in Jhagadia, India. With an initial
capacity of 20,000 metric tons per year, the new compounding facility
will start producing the high-tech plastics Durethan and Pocan at the
beginning of 2012. The investment of more than Euro 10 million will
create 60 new jobs. The company is also investing Euro 10 million to
increase the annual capacity of its facility in Wuxi, China, to
approximately 60,000 metric tons per year by mid-2011.
With its investments in the U.S. and Asia, together with its site in
Krefeld-Uerdingen, Germany, the company has further strengthened
its global market position for Durethan and Pocan. The company also
recently invested Euro 35 million to expand production of the plastic
precursor caprolactam at its site in Antwerp, Belgium. Production will
increase by 10 percent from its current volume of 200,000 metric tons
per year.
The LANXESS Year of High-Tech Plastics
LANXESS has declared 2011 the Year of High-Tech Plastics. As part
of the theme year, LANXESS will be initiating a series of events and
taking part in trade fairs and exhibitions that will provide information
to all interest groups, ranging from customers and political
representatives to the media and employees. The company will be
highlighting where high-tech plastics are used, the benefits they offer
and, in particular, how they can also help ensure sustainable
development.
The Semi-Crystalline Products business unit belongs to the
Performance Polymers segment. It employs around 1,500 people
worldwide with current production sites in Belgium (Antwerp),
Germany (Krefeld-Uerdingen and Hamm-Uentrop (JV)), and China
(Wuxi).
LANXESS is a leading specialty chemicals company with sales of EUR 5.06 billion in
2009 and currently around 14,700 employees in 24 countries. The company is
represented at 45 production sites worldwide. The core business of LANXESS is the
development, manufacturing and marketing of plastics, rubber, intermediates and
specialty chemicals.
Leverkusen,
erb
March 9, 2011
(2011-00042e)
Forward-Looking Statements.
This news release may contain forward-looking statements based on current
assumptions and forecasts made by LANXESS AG management. Various known and
unknown risks, uncertainties and other factors could lead to material differences between
the actual future results, financial situation, development or performance of the company
and the estimates given here. The company assumes no liability whatsoever to update
these forward-looking statements or to conform them to future events or developments.
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