LANXESS Makes First Acquisition in China      

In Jinshan district of Shanghai LANXESS is to acquire two production units from its previous cooperation partner Jinzhuo Chemicals Company Limited. With this acquisition LANXESS will expand its global production capacity for inorganic pigments by 5%. The parties have agreed not to disclose the purchase price.
    "This acquisition is a further significant step in our Asia strategy," said Rainier van Roessel, member of the LANXESS Board of Management responsible for the Asia-Pacific region. "This strategy is based on an increased commitment to markets in which LANXESS is already well positioned. The take-over of pigment production in Jinshan strengthens the position of the Inorganic Pigments business unit on the global market," he added. With this acquisition LANXESS also safeguards the raw material supply for its pigment mixing unit in Shanghai, thereby becoming completely independent of local suppliers.
   The Jinshan site started producing iron oxide yellow pigments 2007 and has a total capacity of 30 000 t/a. Half of this capacity was already utilized by LANXESS. The facility is one of China's largest and uses state-of-the-art and environmentally compatible production methods.