Lanxess breaks ground on first Russian chemical plant

German specialty producer, Lanxess, has made its first step into manufacturing chemicals in Russia by starting construction on a 1,500 tonnes/year rubber chemicals plant.

LANXESS subsidiary Rhein Chemie will operate the plant, based in the Nizhny Novgorod region. According to Rainier van Roessel, member of the LANXESS Board of Management, chemical markets are improving in Russia and the CIS, especially for the auto industry.

He said: “Russia and the CIS are key growth markets for us as part of our strategic focus on the BRIC countries. Construction of this plant is a further important step in our long-term strategy, following our official entry onto the Russian market last year. We are currently seeing a gradual recovery of the rubber industry in Russia, which we want to accompany with a targeted, market-oriented investment.”

LANXESS supplies the markets in Russia and the CIS countries mainly with high-performance rubber and rubber chemicals for the tire and automotive industry, color pigments for the construction industry and ion exchange resins for industrial water treatment.

The new plant in the Dzerzhinsk Industrial Park is due to be completed at the start of 2011, with Rhein Chemie creating 50 new jobs at the site in the medium term.  The company will produce up to 1,500 metric tons of Rhenogran and Rhenodiv rubber additives and release agents at the new plant. These products are used primarily to manufacture car tires and technical rubber products such as hoses and seals.

“We expect to see a rise in demand from the Russian car and tire industries for quality products and we will be able to cater to their needs in the future through our new plant and high-quality, innovative product portfolio,” explained Anno Borkowsky, Managing Director of Rhein Chemie Rheinau GmbH. “

LANXESS has had its own company in Russia since 2009. The sales office of OOO LANXESS was opened in the Federation Tower in Moscow in March of last year and has a current workforce of around 30.

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