Lanxess AG : LANXESS to build plant in Lipezk in Russia

• LANXESS focuses in Russia on the megatrend of mobility
• LANXESS subsidiary Rhein Chemie to produce rubber additives and release agents in Russia from 2014
• Production of bladders for the tire industry from 2016

Lipezk/Leverkusen - The German specialty chemicals group LANXESS is focusing on the megatrend of mobility on the Russian market too. At its new site in Lipezk, LANXESS subsidiary Rhein Chemie will produce rubber additives and release agents for the Russian and CIS markets, especially for the automotive and tire industries. Construction of the new production plant is due to start in early 2012, with the launch of production scheduled for the first half of 2013. In 2016, a production facility for bladders used in tire production is to be added. Total investment will amount to around EUR 5 million, creating 40 new jobs in the medium term.

"Russia and the CIS are key growth markets for us as part of our strategic focus on the BRICS countries and global megatrends such as mobility. By building this site we want to benefit directly from the potential this region offers," said Rainier van Roessel, Member of the Board of Management of LANXESS. According to studies, Russia will already be the biggest market for passenger cars in Europe by 2016, with more than three million vehicles produced.

"Its excellent location in close proximity to our customers and the good infrastructure in the Lipezk Industrial Park were crucial to our decision to choose the site," said Anno Borkowsky, Managing Director of Rhein Chemie GmbH. The company had originally planned to build the site in Dzerzhinsk. "But there, the development of the industrial region has been so much delayed that we had to look for alternatives to be able to quickly meet the high demand for our products," added Borkowsky.

High-tech products for the automotive and tire industries

Every year, the company will produce up to 1,500 metric tons of Rhenogran rubber additives and around 500 metric tons of Rhenodiv release agents at the new plant in Lipezk. These products are used primarily in the manufacture of car tires and technical rubber products such as hoses and seals. In 2016, a facility able to produce up to 80,000 Rhenoshape bladders annually is to be added to the complex.  Bladders are used in the tire industry to give tires their ultimate form and properties. "We are seeing a rise in demand from the Russian car and tire industries for quality products, and we will be able to cater to their needs in the future through our new plant and high-quality, innovative product portfolio," declared Anno Borkowsky.

Strong development in Russian business

LANXESS has had its own company in Russia since 2009. The sales office of OOO LANXESS was opened in the Federation Tower in Moscow in March 2009. Since then business has developed strongly: LANXESS recorded sales of almost EUR 50 million on the Russian market in the first nine months of 2011. That is more than twice as much as in the whole of 2009. The group currently employs around 30 people in Russia.

LANXESS is a leading specialty chemicals company with sales of EUR 7.1 billion in 2010 and currently around 16,100 employees in 30 countries. The company is at present represented at 47 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 sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.