Lanxess build world’s largest EPDM plant in China

Lanxess to build world’s largest EPDM plant in China

4:40 AM, 5th September 2012
Lanxess to build world’s largest EPDM plant in China
Axel C Heitmann, CEO, Lanxess.

SHANGHAI, CHINA/LEVERKUSEN, GERMANY: Lanxess is building the world’s largest plant for ethylene propylene diene monomer (EPDM) synthetic rubber in China. Said to be Lanxess’ largest investment in China to date, the company will invest €235 million in the plant in Changzhou (Jiangsu Province). With a capacity of 160,000 metric tonne per year, the investment will create up to 200 new jobs. The plant is expected to start up 2015.

Lanxess is the world’s leading supplier of EPDM following the successful acquisition of DSM Elastomers in 2011. Global demand for EPDM is expected to increase by more than four per cent per annum in the coming years, while demand in China is expected to grow by around eight per cent, driven majorly by automotive and construction sectors.

“We are strengthening our global EPDM asset base with a world-scale plant in China to serve local customers even quicker with premium products. This plant also represents our company’s third major rubber investment in Asia and strengthens our credentials as the world’s leading provider of synthetic rubber,” said Axel C Heitmann, CEO, Lanxess, at the ground breaking ceremony.

The new EPDM plant will be located in Changzhou Yangtze Riverside industrial park, with access to excellent storage and ship uploading facilities. Lanxess will be supplied the key raw materials ethylene and propylene from a methanol-to-olefins (MTO) plant currently under construction at the site.

Lanxess will use Keltan ACE technology to enable sustainable production at its new plant. The plant will produce in total ten premium grades of EPDM tailored to Chinese customer needs. According to Lanxess estimates, approximately seven kilograms of EPDM is used in every car. Lanxess is targeting sales of more than € 1 billion in Greater China (mainland China, Hong Kong, Taiwan and Macao) in 2012.

© WOC News



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