LANXESS inaugurates hydrazine hydrate plant in China

Successful relocation of plant from Texas to Weifang

14-Jul-2006

The Lanxess chemicals group inaugurated a plant for producing hydrazine hydrate in Weifang in the Chinese province of Shandong. The plant had previously been dismantled in the USA and transported to China. "This marks a further key milestone for us in boosting our profitable growth in Asia," said Axel C. Heitmann, Chairman of the LANXESS Management Board, at a press conference in Weifang. "Relocating the plant enables us to become one of the leading hydrazine hydrate producers in China," adds Heitmann. China is the fastest growing hydrazine hydrate market in the world.

With an initial capacity of 12,000 metric tons a year, the new plant is one of the largest of its kind in the world and complies with the latest US standards in environmental protection and occupational safety. Hydrazine hydrate is used in the agro, pharmaceuticals, automotive and leisure industries, for example. Most of the raw materials required are being supplied by the joint venture partner Weifang Yaxing Chemical Company Ltd. LANXESS has a 55 percent share in the joint venture LANXESS Yaxing Chemical (Weifang) Company Ltd., founded in September 2004. LANXESS is the first international investor in the new Weifang Industry Park.

Relocation of the plant started in January 2005. Overall, LANXESS transported over 3,000 individual parts weighing over 1,100 metric tons in total on five ships from Texas to the Chinese port of Qingdao. From there, the plant was carried on special trucks to Weifang, 120 km away.

Hydrazine hydrate - a wide range of applications

Hydrazine hydrate is a key component for the pharmaceuticals industry in manufacturing medicines, including those for the treatment of tuberculosis, forms of depression and hypertension. And in crop protection, for instance, hydrazine is a vital intermediate for growth regulators. It is also used as an intermediate in chemical synthesis, for example in the production of a blowing agent for foaming plastics. Plastic foams are processed into a wide range of consumer goods such as shoes, furniture and cars.

A further important application for hydrazine hydrate is corrosion protection in closed water cycles. As an antioxidant, it protects pipes from rust and premature aging, particularly in the steam circuits of heating and power plants, thus significantly increasing plant reliability.

While demand for hydrazine hydrate worldwide is on the downturn, for a number of years China has experienced double-digit growth rates in this sector.

The new plant in Weifang means that LANXESS now has a total of four production sites in China, alongside Shanghai, Qingdao and Wuxi. It has sales offices in Shanghai and Hong Kong. LANXESS employs a total of about 700 staff in China.

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