LANXESS invests in new site in China
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As part of its Asia strategy, the LANXESS chemicals group is building a new plant for the manufacture of lubricant additives in Qingdao, China. The production facility, which belongs to LANXESS's subsidiary Rhein Chemie, shall go on stream at the latest in the fourth quarter of 2008 and will initially employ 50 people. It is estimated that the amount in euros to be invested will be a single-digit million value.
At the new facility Rhein Chemie will focus on the manufacture of customized additive formulations for lubricants with the product name Additin®.
With an annual volume of around 4.4 million metric tons, the market for lubricants in China is about four times as big as in Germany, according to the company. Annual growth is estimated to be eight percent. The industrial lubricants segment, which is of particular interest to Rhein Chemie, is likely to double by 2012 with an even higher growth rate at the current time of one million tons per year.
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