Lanxess to shift India rubber chem unit to Gujarat

18 January 2008 09:28  [Source: ICIS news]

MUMBAI (ICIS news)--Lanxess will relocate its India rubber chemicals production facility from Thane in Maharastra state to Jhagadia in Gujarat state at an investment of €50m ($73.5m), the German specialty chemicals group said on Friday.

"Production [at Jhagadia] will begin in two years at the same time as the launch of the new ion exchange resin plant [at the same location]," Lanxess said in a statement.

Lanxess will start supplying the rapidly growing Indian tire market with rubber chemicals from this site from 2010, it added.

Jhagadia will be Lanxess’ biggest production site in India, it said. The company also runs a facility at Madurai in the southern Indian state of Tamil Nadu.

The Jhagadia ion exchange resins plant will supply products for the generation of ultra-pure water for the semiconductor and pharmaceutical industries and for industrial water treatment, Lanxess said.

"The Asia-Pacific region is of crucial significance for Lanxess," it said.

In the third quarter of 2007, the region registered sales of €325m, up 2.2% from a year ago, it added.

"This was due in part to the positive development in India. Its economic performance has grown on average by 8.6% annually over the past four years – only the Chinese economy has grown faster," Lanxess said.

The Asia-Pacific region’s share of total sales rose from 18.8% to 19.1%. In the past India has posted strong economic figures, it added.

($1 = €0.68)

By: Divya Chowdhury
+65 6780 4359

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