2019-11-28

LANXESS Supports China’s High Quality Development

  • Stable development in Q3 2019, with double-digit growth in Greater China
  • Signed MOU with Shanghai Chemical Industry Park (SCIP)
  • Plan to set up an APAC Application Development Center in Shanghai

Shanghai – November 28, 2019 – LANXESS has underpinned its commitment to support China’s High Quality Development: The German specialty chemicals company said today that it signed a Memorandum of Understanding (MOU) with Shanghai Chemical Industry Park (SCIP) in September to reserve land for an integrated production site. Furthermore, the company is planning to establish an Application Development Center for the Asia-Pacific region in Shanghai. 


The investment plans are supported by gratifying financial results in the third quarter. While the LANXESS Group achieved stable operating results again, Greater China recorded double-digit growth in its EBITDA pre exceptionals. Business with flame retardants and additives, water purification products and biosecurity products was particularly strong.

 

Investment plans in China

By signing the MOU with SCIP in September this year, LANXESS has reserved 20 ha of land to set up an integrated site as a new base for sustainable growth in China. The company also plans to set up an integrated APAC Application Development Center (AADC) in Shanghai. This comes as the need for localized product grades increases due to shifting demand toward value added products in China. With local innovation already making up a large share of new business, the AADC will further strengthen innovation capabilities in China and the Asia-Pacific region.


“We are confident in China’s future growth potential. The country’s chemical market is a key pillar in the region. It is already the largest in the world, and by 2030 will account for almost 50% of all global chemical sales. Our investments will help us meet the growing market demand here,” said Ming Cheng Chien, President of the LANXESS Asia-Pacific Region. “In addition, they express our deep commitment to support China in realizing High Quality Development.”


The planned investments are part of LANXESS’s growth initiative in Asia. To promote synergies between countries and business units, the company in 2018 launched a new regional setup in the Asia-Pacific region covering Greater China, Japan, South Korea and the ASEAN countries. The same year it announced that it will invest about EUR 250 million in Asia-Pacific by 2023, with the majority intended for the Chinese market. Marking a first milestone, LANXESS started in September this year operations of a new production facility in Changzhou for high-tech plastics enabling New Mobility.  

 

About LANXESS

LANXESS is a leading specialty chemicals company with sales of EUR 7.2 billion in 2018. The company currently has about 15,500 employees in 33 countries and is represented at 60 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. LANXESS is listed in the leading sustainability indices Dow Jones Sustainability Index (DJSI World and Europe) and FTSE4Good.

 

LANXESS China

On January 31, 2005, the company was initially listed on the Frankfurt Stock Exchange and LANXESS Chemical (China) Co., Ltd. officially started operations. LANXESS has 15 subsidiaries, 7 R&D centers and 8 production sites with around 1,500 employees in Greater China. LANXESS works closely with its local partners to develop market-oriented solutions that meet local market needs.

 

Forward-Looking Statements

This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accept any liability whatsoever arising directly or indirectly from the use of this document.

 

Information for editors:

All LANXESS news releases and accompanying photo, video and audio materials can be found at http://www.lanxess.cn, http://www.weibo.com/lanxess, or LANXESS’ official WeChat account: LANXESS_china

 

 

 

Contact

Yu Fiona

Yu Fiona
Corporate Communications

Phone: +86 21 6109 6666

Fax: +86 21 6109 6717

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