German specialty chemicals group Lanxess said Wednesday it would build the world's largest plant for ethylene propylene diene monomer (EPDM) synthetic rubber in China.
The plant will have an annual capacity of 160,000 mt/year and is expected to be on stream in 2015. It will be built at the Changzhou Yangtze Riverside Industrial Park in China's Jiangsu province.
Investment in the project is expected to reach Eur235 million ($294 million), making it the company's biggest investment in China so far, Lanxess said in a statement.
"Global demand for EPDM is expected to increase by more than 4% per annum in the coming years, while demand in China is expected to grow by around 8%, driven above all by automotive and construction industries. China will also continue to be the largest net importer of EPDM in the coming years," the company said.
Lanxess said it would secure supply of the key raw materials ethylene and propylene from a methanol-to-olefins (MTO) plant currently under construction at the site.
EPDM is widely used in the automotive industry as door sealants or windscreen wipers. According to Lanxess estimates, around 7kg of EPDM is used in every car. EPDM is also used in the plastics modification, cable and wire, construction and oil additives industries.
Lanxess has existing EPDM production sites in Geleen in the Netherlands, Marl in Germany, Orange in the US and Triunfo in Brazil, with a combined capacity of 320,000 mt/year.
