Lanxess Investing to Meet Asian Tyremakers’ Needs
Chemical group Lanxess has plans to expand its global position in the butyl rubber market and is pursuing plans to build a new facility in Asia. The company will invest somewhere in the vicinity of 400 million euros in the project and at present three possible sites – Singapore, Kuantan in Malaysia and Map Ta Phut in Thailand – are under consideration. Lanxess has reportedly already analysed a number of sites across Asia to assess their feasibility.
“This would be the largest investment in the history of our company,” said Lanxess management board chairman Axel C. Heitmann during a visit to Singapore. “In the next few months we will hold talks with possible host locations to determine the feasibility of the construction of a new plant. Should we decide upon a location, we will be able to bring the facility on stream in 2010.”
With this new investment Lanxess hopes it can further satisfy the growing demand for butyl rubber in Asia. Tyre production will continue to be the main use of butyl and Lanxess anticipates the continued rapid increase of the manufacturing capacity of Asian tyremakers.