As it continues to strengthen its global presence, specialty chemicals company LANXESS is galvanising its operations in China. China automotive The Cologne-based company is establishing a new plant for high-performance plastics in Changzhou for around €20 million (£17.5 million). From April-June 2019, the compounding plant will produce 25,000 metric tonnes of Durethan and Pocan high-tech plastics for E&E and automotive. “China is the largest automotive market in the world and is setting the pace for electromobility," stated Matthias Zachert, Chairman of the LANXESS Board of Management. "We want to support growth in this important region and are expanding our presence in the high-performance plastic segment." LANXESS data reveals that an estimated one in four of the approximately 85 million cars sold around the world this year will be sold in China. This figure is expected be one in three in 2025. The E&E industry also offers a great deal of potential in China. LANXESS expects here annual growth of around nine per cent till 2021. “At the same time, we are expanding our global network of compounding plants with the new production site and are continuing to consistently focus our portfolio on high-value plastics,” said Michael Zobel, Head of the High Performance Materials business unit at LANXESS. This investment significantly strengthens LANXESS' Changzhou site. At the Binjiang Chemical Park in Changzhou, the Group already has plants for leather chemicals and synthetic rubber, which currently employ around 350 people. The new plant for high-performance plastics will create 35 additional jobs. Most important customer LANXESS' most important customer is the automotive sector. The compounder's innovative materials allow the construction of components to replace metal parts in motor vehicles and thus contribute to reducing weight, fuel consumption and emissions. LANXESS plastics are used, for example, in engine applications, door structures, pedals, front ends and cockpit cross members. Depending on the part, the lightweight construction can make parts 50 per cent lighter than their traditionally-manufactured counterparts. There are also many applications for LANXESS plastics in hybrid and electric vehicles, some of which are already successful in mass production. These include components for charging systems, carriers and cell holders for battery systems as well as sensors and housing parts for electric motors. The materials also have great potential in electromobility infrastructure, such as in housing, switches and terminal clips for charging stations. In autonomous driving, polyamides and polyesters are ideal for connectors for sensors, displays and control units, for example. Global production network The business unit operates a global production network at the following locations: Dormagen (Research & Development); Krefeld-Uerdingen (PA 6 Polymerization, Compounding); Hamm-Uentrop (PBT Polymerization, Compounding); Brilon (Tepex Production and Development); Antwerp, Belgium (PA 6 Polymerization); Wuxi, China (Compounding); Jhagadia, India (Compounding); Gastonia, USA (Compounding); and Porto Feliz, Brazil (Compounding). Source:https:// www.eppm.com