In process of investing around Rs 320 crore
Specialty chemicals company Lanxess India Pvt Ltd has commenced production at its new site in Jhagadia in Gujarat after the rubber chemicals plant was relocated from Thane, Maharashtra. This will be the company's largest production site in India with an overall investment of 50 million euros (Rs 320 crore approx) in 13 hectares.
The company has completed first phase of construction at site in less than two year's time and plans to supply the global rubber and mineral oil additive market as well as the rapidly growing Indian tyre and rubber industry with antioxidants belonging to 'Vulkanox' brand of Lanxess.
"The Jhagadia site will become Lanxess’ largest production site in India and highlights our long-term commitment to the growing domestic market as well as our Group’s BRIC strategy. With this plant, Lanxess stands out as the only western company to be manufacturing rubber chemicals in India," said Luis López-Remón, global head of the rubber chemicals business unit of Lanxess.
The site will also include a new ion exchange resins plant. The resins plant is also on schedule and is expected to start production this year. Around 250 workers are likely to be employed at the site.
The ion exchange resins plant will manufacture products for industrial remove waste water treatment, for the semiconductor and pharmaceutical industries, for food production and for power generation. The Lanxess site is part of the newly-developed Jhagadia Chemical Park that has connectivity to the to the international seaports of Nhava Sheva and Kandla on India’s west coast through inland waterways.
Lanxess itself will operate a natural gas-based cogeneration plant to supply steam and electricity to the rubber chemicals and ion exchange resins plants. In addition, the company is building a modern waste-water treatment plant to ensure all used water from the plants is discharged well within environmental limits .
More From This Section
The Rubber Chemicals business unit (RUC), a part of the Performance Chemicals segment of Lanxess registered sales of 1,148 million euros globally in the first nine months of 2009, acoording to a company release.
Lanxess had a turnover of 6.58 billion euros in 2008 and currently employs around 14,600 employees in 23 countries. Its core business is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.