LANXESS widens China inorganic pigments reach

26 June 2008 10:39  [Source: ICIS news]

SHANGHAI (ICIS news)--LANXESS has made its first acquisition in China to expand its Asian inorganic pigments business unit, the German producer announced at a press conference on Thursday.

The specialty chemical company has bought in the Jinshan plant, China’s largest inorganic pigments producer, from its co-operation partner Jinzhuo Chemical Co, without disclosing the price of the acquisition.

“We have purchased all equipment and will be granted the land use right of the Jinshan facility from our joint-venture partner Jinzhuo Chemical Co which has leased one of the plants to us since last year in Shanghai,” said LANXESS Greater China president Wang Yongli.

The Jinshan production site near Shanghai has a capacity of 30,000 tonnes/year of yellow pigments and half of the capacity is already being utilised by LANXESS.

“We’ll invest yuan [CNY] 30-40m ($4m-5.8m) into the Jinshan facility to increase its output and boost its efficiency and in the future, we will be backward integrated and serve the premium markets independent from any other source,” said head of inorganic pigments Jorg Hellwig.

LANXESS operates 300,000 tonnes/year of iron oxide and chrome oxide pigment production at its facilities in the US, Brazil, Australia, Asia and Europe.

“We have production sites at Krefeld of Germany, Porto Feliz of Brazil and Jinshan of China,” added Hellwig.

With this acquisition LANXESS will expand its global production capacity for inorganic pigments by 5% and will be independent from external intermediate material suppliers.

Inorganic pigments used to colour construction materials such as roofing tiles, paving blocks and concrete but they also go into paints, coatings, plastics and paper materials.

($1 = CNY 6.87)

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By: Dolly Wu
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