German specialty chemical group Lanxess said Thursday it is investing over Eur40 million ($57 million) to strengthen its presence in the rapidly growing Chinese market.
"China remains one of the fastest growing markets in Asia and a key pillar of our mid-term growth strategy," said Lanxess CEO Axel Heitmann in a statement.
On Friday, the company is set to start up a third production line at its plastics plant in Wuxi, Jiangsu. Lanxess said it required an investment of Eur10 million and will increases total capacity at the plant to 60,000 mt/year. It didn't state current capacity.
The plant will produce lightweight plastics, under the brand names Durethan and Pocan, that replace heavier metal parts in automobiles, which help fuel efficiency and reduce emissions. China is the world's largest automotive market, and is expected to grow by 9% this year.
Next week, the company said it will open a technology center in Qingdao, Shandong province to service the domestic beverage industry, at an investment in the single digit millions of euros.
At the start of this week the company held a ground breaking ceremony for a new Eur30 million leather chemicals plant in Changzhou in Jiangsu province, with a capacity of 50,000 mt/year when it becomes operational in 2013.
Among the chemicals the plant will produce are tanigan, isoderm, euderm and Levotan used for leather tanning, dying and finishing applications. China is the largest market for leather chemicals worldwide, with steady growth expected in the coming years.
