Lanxess expands inorganic pigments facility in China

German specialty chemicals major Lanxess has decided to add a mixing and milling plant to the pigment facility, which is already under construction in Ningbo (China), in order to strengthen its production network in China to meet the high level of demand for iron oxide pigments from coatings, plastics, construction and paper industries. This brings the total investment at the Ningbo site from around Euro 55 million to around Euro 60 million.
 
The new plant for iron oxide red pigments in Ningbo, which has been built to the latest environmental standards, is being designed for an initial annual synthesis capacity of 25,000 metric tonnes. On the same site, Lanxess is building the mixing and milling plant for pigments with an annual capacity of 70,000 metric tonnes. This plant will also process raw pigments from other Lanxess sites for the Asian market. The plants are scheduled to be completed in the fourth quarter of 2015 and to start production in the first quarter of 2016.
 
At the same time, Lanxess will also close its existing mixing and milling operations in Taopu, Shanghai, with an annual capacity of 35,000 metric tonnes by the end of 2016. Shanghai City Council will be integrating the vacated plant grounds into a high-tech park in Shanghai’s Putuo District.
 
“The trend towards urbanisation is continuing unabated. Our decision to significantly expand our plant in Ningbo is based on the fact that the global demand for iron oxide pigments is growing at an annual rate of around three percent. In addition to our Jinshan/Shanghai site in China, we will then have another very strong base for our global production network. By doubling our milling capacities in China, we are strengthening our position as a world-leading manufacturer of iron oxide pigments with a wide-ranging product portfolio for customers,” said Jorg Hellwig, head of the Inorganic Pigments business unit (IPG) at Lanxess.