News

2015-11-20

LANXESS completes construction of new inorganic pigments plant in Ningbo

November 20, Ningbo/Shanghai – Specialty chemicals company LANXESS has celebrated the completion of construction works at its new plant for inorganic pigments in Ningbo, China. In the first quarter of 2016, highly saturated red iron oxide pigments will be produced here for the global market using an innovative and highly sustainable new process.


The new LANXESS plant will be the role model for an environmentally friendly and safe production of high-quality iron oxide red pigments, not only in China. Highest product quality, sustainable production and resource-saving management of raw materials can be achieved by using the patented and newly developed Ningbo Process.


The total investment at the Ningbo site is around EUR 60 million for an initial annual synthesis capacity of 25,000 metric tons. On the same site, LANXESS is building a mixing and milling plant for inorganic pigments with an annual capacity of 70,000 metric tons and has created a total of around 200 new jobs with these two plants which are scheduled to start production in the first quarter of 2016.


“The new plant manifests our continuous investments into new technologies and capacity expansions. It not only expands our global production capacity but furthermore strengthens our position as a reliable partner to the customers industries with a broader product portfolio, especially with our New Red pigments range”, said Joerg Hellwig, Head of LANXESS Inorganic Pigments business unit.


China is the world’s major iron oxide pigments consumer. The country’s closer focus on sustainable development is leading to rising demands for environment-friendaly premium iron oxide pigments - particularly for red pigment production.
In the future, LANXESS will market their New Red iron oxide pigments globally under the well-known Bayferrox brand. The main customers for these pigments are manufacturers of paints and coatings, as well as the plastics industries.


The New Red iron oxide pigments with an unmatched color hue are produced by using the innovative Ningbo production process. It will be the first sustainable production process in China with a consequent recycling and treatment of all by-products. For example, process optimization will lead to a significant reduction of carbon dioxide equivalents. Another example is that a recycling process of off-gases will lead to fresh raw materials for production. Compared with the traditional Penniman Red process, the Ningbo Process uses a special catalyst to convert laughing gas to air and water. Thanks to the particularly energy-efficient Ningbo process, the plant will meet the highest international environmental standards.


“LANXESS has been producing iron oxide pigments for almost 90 years. We have continuously invested into the development of more environmentally friendly processes and products. The focus on sustainability in all production steps gives us a competitive advantage in the Chinese market where environmental friendliness is one of the most important topics today,” said Rafael Suchan, Vice President for the Inorganic Pigments business Unit in Asia Pacific.


LANXESS already operates one of China’s largest and most modern plants for iron oxide pigments in Jinshan, Shanghai. This plant has an annual capacity of 38,000 metric tons of high-quality iron oxide yellow and black pigments each year.


“The new pigment plant in Ningbo will further expand our footprint in the China market which is of strategic importance to LANXESS. It will also enable us to meet local customers’ needs for customized and innovative products in a more efficient manner,” said Chien Ming Cheng, CEO of LANXESS Greater China. “While we are celebrating our 10th anniversary this year, we look forward to achieving win-win success with customers for many more decades ahead.”


China plays a key role in LANXESS’s global growth strategy. All LANXESS business units are represented, with a total of around 1,400 employees in Greater China. LANXESS already operates 8 production sites, 8 R&D centers, 5 offices in China.
With an annual capacity of more than 375,000 metric tons, the LANXESS Inorganic Pigments (IPG) business unit is one of the world's leading manufacturers of iron oxide and chromium oxide pigments with a strong global production network.


About LANXESS
LANXESS is a leading specialty chemicals company with sales of EUR 8.0 billion in 2014 and about 16,300 employees in 29 countries. The company is currently represented at 52 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. LANXESS is a member of the leading sustainability indices Dow Jones Sustainability Index (DJSI World and DJSI Europe) and FTSE4Good.


LANXESS China
On Jan. 31, 2005, LANXESS AG was initially listed on the Frankfurt Stock Exchange, and its subsidiary LANXESS Chemical (China) Co., Ltd. officially began operations. Today, LANXESS has 10 subsidiaries including two joint ventures, as well as eight R&D centers in China, with about 1,400 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 news release may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.


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