LANXESS–TSRC (Nantong) Chemical Industrial Company Ltd., a 50:50 joint venture between German specialty chemicals group LANXESS AG and Taiwanese company TSRC Corporation, has broken ground for the construction of a nitrile rubber (NBR) plant in Nantong, northwest of Shanghai. The plant, with an investment of 50 million USD (approx. EUR 36 million), will occupy an area of around 40,000 square meters. It is scheduled to start production in the first half year of 2012 with an initial annual capacity of 30,000 metric tons. Driven by the mega trends of mobility and urbanization in China, the demand for NBR is expected to grow at double-digit rates.
"The new plant will feature the latest technology and is an important step for LANXESS's planned growth in the nitrile rubber market in Asia, especially in China," stressed LANXESS Board Member Werner Breuers.
Günther Weymans, Global Head of Technical Rubber Products business unit, said, "We are responding to the growing demand for NBR in China with high-quality products. NBR is essential for the production of automobiles, as well as the construction, footwear, cable and plastics industries. In China, every one of these sectors is booming."
TSRC’s CEO Wei-Hua Tu said that the the dedicated efforts from both companies will pave the way for the successful construction and operation of the state-of-the-art NBR plant.
NBR products have higher resistance to oil than conventional rubbers. They also demonstrate better resistance to abrasion, ozone, UV light, hot air and long-term aging. With these properties, they are used in a wide-range of applications such as seals, hoses for hydraulics and pneumatics, rubber gloves, elastic threads, as well as blankets for print cylinders and rolls.
TSRC is one of the largest synthetic rubber producers in Asia. It posted sales of USD 700 million in 2009 and currently employs 1,100 people worldwide.
LANXESS (lanxess.com, lanxess.sg) is a leading specialty chemicals company with sales of EUR 5.06 billion in 2009 and currently around 14,400 employees in 23 countries. The company is represented at 42 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
This news release may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.