February 20, 2007

Increase in capacity in India

India is one of the most important growth markets in Asia for LANXESS. Lustran Polymers boasts the highest sales of any LANXESS business unit in India.

As part of its Asia strategy, the LANXESS chemicals group is to step up its activities in India considerably in its drive for profitable growth. A significant investment in new projects is possible this year, in addition to the capacity expansion projects already under way. "For us India is the most important growth market in Asia after China. We are working on the assumption that the country will take over from Japan and move into second place in terms of sales by 2010", said LANXESS Management Board Chairman Dr. Axel C. Heitmann at a press conference in Mumbai on February 15.

Currently LANXESS is in the process of building a further compounding facility in Moxi (India) for coloring ABS plastics. With double-digit growth rates, India is the strongest-growing market for ABS plastics in Asia, and Lustran Polymers boasts the highest sales of any LANXESS business unit in India. In 2006 LANXESS ABS Ltd., which is listed on the Mumbai stock exchange and belongs to the Business Unit Lustran Polymers, increased its operating profit by around 40 percent compared with the previous year. LANXESS is the market leader for engineering thermoplastics in India. The biggest growth driver is the emergent Indian automotive industry. Typical applications include fenders, radiator components and headlamp housings.

The new facility is a further step towards the expansion of ABS capacity from 60,000 to 80,000 t/y. Capacity can be further raised to 100,000 t if needed. The project will enable LANXESS to consolidate its leading position with this business in India and to continue participating in the strong market growth.

The Asia-Pacific region is of central importance to LANXESS. In 2005, the company recorded an increase in sales in the region of around 21 percent compared with 15.8 percent in 2004. The strong sales growth also continued in the first nine months of 2006.