Wang Yongli, president of LANXESS China, said that the company’s hydrated hydrazine plant in Weifang, China, is scheduled to start production in the third quarter of this year. This 12,000-ton/year installation, originally located in Baytown, Texas, has been dismantled and rebuilt in China. At the recent Chemical Week Asia-Pacific Chemical Conference held in Singapore, Wang Yongli said that although the project is facing difficulties, the outlook is promising. The device was built by a 55%/45% joint venture between LANXESS and Weifang Yaxing Chemical.
In addition, LANXESS stated that the anti-oxidant joint venture to be built in Tongling in early 2007 will enable LANXESS to take a greater share of the Chinese market. LANXESS already has several joint ventures in China supplying the rubber industry.
LANXESS's 20,000-ton/year engineering plastics compounding facility in Wuxi will be put into production next month. The device will produce LANXESS's Durethan brand nylon and Pocan brand polyester semi-crystalline plastics. It is said that LANXESS will also build a second production line to expand the scale of the device. Last year, LANXESS had doubled Wuxi’s leather chemicals capacity. The company also established its engineering rubber business headquarters in Shanghai last year, and has invested in the technology center for this business.
The president of LANXESS China stated that in the next five years, China will be the main investment destination for LANXESS. The company will then increase its investment in India. LANXESS has determined that China is its strategic focus in the future, through new investment projects or transfer of assets from other regions in order to re-arrange LANXESS's assets. Currently, less than 5% of LANXESS's assets are in Asia, and Asian sales account for about 15%.
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