2021-04-02

LANXESS Makes a Confident Start in 2021, Enters Battery Chemistry Business

Ming Cheng Chien, President of the LANXESS Asia Pacific Region Photo: LANXESS

Shanghai – April 2, 2021 – German specialty chemicals company LANXESS today held its Annual Press Conference in Greater China on financial results in 2020 and business strategy for 2021. The company’s sales last year reached EUR 6.104 billion and EBITDA pre exceptionals stood at the upper end of the guided range at EUR 862 million. LANXESS is starting 2021 with confidence, expecting that many of its customer industries will recover. The company anticipates EBITDA pre exceptionals of between EUR 900 million and EUR 1 billion for the full year.

 

“China is an important market for LANXESS and the only one in the Asia-Pacific region with strong demand amid the pandemic. Sales in Greater China in 2020 accounted for 14 percent of the group’s total global sales, maintaining the high level of the previous year. Our results were bolstered by surging demand in the automotive sector and our new Consumer Protection segment,” Ming Cheng Chien, President of the LANXESS Asia Pacific Region, said.

 

At the press conference, LANXESS also announced to enter the field of battery chemistry by cooperating with Guangzhou Tinci Materials Technology Co. (Tinci), a leading global manufacturer of lithium-ion battery materials. Starting already next year, LANXESS will produce electrolyte formulations for lithium-ion batteries under the authorization of the Chinese company.

 

“The upswing in E-Mobility is accelerating. Numerous new plants for battery cell production are currently being built in Europe. This fast-growing market also offers great opportunities for LANXESS, especially in the field of battery chemistry. We already produce many raw materials for battery manufacturing. The cooperation with Tinci is another step in establishing ourselves in this market,” Ming Cheng Chien said.

 

The electrolyte is responsible for transporting lithium ions in the battery cell and thus is a key component of lithium-ion batteries. The high-performance electrolyte formulations from Leverkusen will enable Tinci to become a domestic supplier for battery cell manufacturers in Europe. 

 

For production, LANXESS will use a high-tech plant operated by its subsidiary Saltigo, a leading global custom manufacturer. In this plant, electrolytes can be formulated in line with the highest quality requirements. Saltigo will bring its extensive chemical expertise to the partnership, while at the same time further expanding its experience in the field of electrolyte production.

 

Ming Cheng Chien also provided an update on the construction of the LANXESS Asia Pacific Application Development Center (AADC). “The building was handed over to us in mid-December by Shanghai Chemical Industry Park (SCIP), and we are on track to start operation in mid-2021 as planned. With local innovation already making up a large share of our new business in China, the AADC will further strengthen the company’s capabilities to answer the increasing need for localized product grades,” he said.

 

While expanding the market, LANXESS always regards sustainable development as one of its important strategies. In November 2019, the company announced its goal to lower its greenhouse gas emissions from around 3.2 million metric tons of CO2e today and achieve climate neutrality by 2040. So far, the implementation is on track. Compared with 2019, LANXESS has reduced greenhouse gas emissions in 2020 by 14 percent, or around 417,000 metric tons of CO2e. 

 

 

About LANXESS

LANXESS is a leading specialty chemicals company with sales of EUR 6.1 billion in 2020. The company currently has about 14,300 employees in 33 countries. 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 now 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 www.lanxess.cn, www.weibo.com/lanxess, or LANXESS’ official WeChat account: LANXESS_china

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