The Hindu Business Line : European co sets up rubber additives plant

Lanxess, a European-based chemicals supplier, has announced the establishment of a production plant for rubber additives, under its polymer-bound chemical product line, Rhenogran.

The new production plant will open under Lanxess' business unit, Rhein Chemie at Madurai, by the end of 2006.

"As a result of this project we will be able to meet the rapidly increasing demand for polymer-bound chemicals of the Indian automotive, engineering, tyre and footwear industries," said Dr Martin Wienkenhover, Member of the Management Board, Industrial Relations Director, Lanxess.

Lanxess was a part of the Bayer Group and entered the Indian market in 1896. It currently functions independently with 15 business units in India and headquarters at Thane.

The new plant will have a capacity of around 2,000 tonnes. However, the company did not disclose investment details in the plant.

To expand Styrenics

Lanxess also plans to expand its Styrenics resins business to complement the growth in the transportation and electronics industries in the country. Styrenics business in India accounts for 50 per cent of its total sales.

Lanxess has recorded sales of $210 million in India and growth rate of 14 per cent. It expects to increase its sales in India by 100 per cent by 2010. It has decided to target more investment and co-operation from local partners.

Another part of its strategy, to expand its base in India, is to use local labour, said Mr Wienkenhover.

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