LANXESS Expands India and Brazil Operations

India's JHAGADIA (February 7, 2012) is located in Gujarat in the west of India and is rapidly emerging as a new car town. The LANXESS Group established a new engineering resin compounding plant in Jhagadia on January 31st and began to enter the Indian market.

LANXESS also revealed plans for a new compounding plant in Brazil.

LANXESS Germany has responsibility for limiting the company’s general manager of semi-crystalline products, Michael Zobel, to an exclusive interview with the US “Plastics News” at the new plant. In Gujarat, “Our short- and medium-term goal is to supply the automotive industry in India, and India now has the world. The sixth-largest automotive market is expected to become the third largest market in the world by 2017."

The new plant is the second LANXESS plant in Asia and the first Asian plant is located in Wuxi, Jiangsu. LANXESS initially announced its plan to build a factory in Jhagadia at the 2010 K show in Germany.

Zobel said LANXESS plans to build a plant in Brazil by 2013.

He said: "We will build a new plant around the automotive center in Brazil," but he would not disclose the specific location. Lanxess plans to spend $20 million to build the plant.

LANXESS spends about 10 million euros at its factory in Jhagadia with an annual capacity of 44 million pounds. The new plant in India will supply automakers such as Volkswagen, Ford and Tata Motors, all of which have promised to focus on large-scale investment in Gujarat.

He said that in the next five years, the new plant will begin to supply customers in ASEAN countries, including Thailand, Malaysia, Indonesia and Vietnam.

Zobel said the LANXESS plant is highly flexible and can increase production capacity as demand increases.

The new plant will produce Durethan polyamide and Pocan polyphthalic acid. Zobel said that the output of Durethan will account for about 80%.

Applications for such materials include door handles, intake manifolds, cylinder heads, under hood components, and interior trim parts.

LANXESS, headquartered in Leverkusen, Germany, will supply resin raw materials for its new plant in India from its factories in Belgium and Germany.

In addition to the new Jhagadia plant, LANXESS has also set up its Indian headquarters in Thane.

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