German specialty chemicals company LANXESS today held its Annual Press Conference in Greater China on financial results in 2020 and business strategy for 2021. The company’s sales last year reached EUR 6.104 billion and EBITDA pre exceptionals stood at the upper end of the guided range at EUR 862 million. LANXESS is starting 2021 with confidence, expecting that many of its customer industries will recover. The company anticipates EBITDA pre exceptionals of between EUR 900 million and EUR 1 billion for the full year.
“China is an important market for LANXESS and the only one in the Asia-Pacific region with strong demand amid the pandemic. Sales in Greater China in 2020 accounted for 14 percent of the group’s total global sales, maintaining the high level of the previous year. Our results were bolstered by surging demand in the automotive sector and our new Consumer Protection segment,” Ming Cheng Chien, President of the LANXESS Asia Pacific Region, said.
At the press conference, LANXESS also announced to enter the field of battery chemistry by cooperating with Guangzhou Tinci Materials Technology Co. (Tinci), a leading global manufacturer of lithium-ion battery materials. Starting already next year, LANXESS will produce electrolyte formulations for lithium-ion batteries under the authorization of the Chinese company.
“The upswing in E-Mobility is accelerating. Numerous new plants for battery cell production are currently being built in Europe. This fast-growing market also offers great opportunities for LANXESS, especially in the field of battery chemistry. We already produce many raw materials for battery manufacturing. The cooperation with Tinci is another step in establishing ourselves in this market,” Ming Cheng Chien said.
The electrolyte is responsible for transporting lithium ions in the battery cell and thus is a key component of lithium-ion batteries. The high-performance electrolyte formulations from Leverkusen will enable Tinci to become a domestic supplier for battery cell manufacturers in Europe.
For production, LANXESS will use a high-tech plant operated by its subsidiary Saltigo, a leading global custom manufacturer. In this plant, electrolytes can be formulated in line with the highest quality requirements. Saltigo will bring its extensive chemical expertise to the partnership, while at the same time further expanding its experience in the field of electrolyte production.
Ming Cheng Chien also provided an update on the construction of the LANXESS Asia Pacific Application Development Center (AADC). “The building was handed over to us in mid-December by Shanghai Chemical Industry Park (SCIP), and we are on track to start operation in mid-2021 as planned. With local innovation already making up a large share of our new business in China, the AADC will further strengthen the company’s capabilities to answer the increasing need for localized product grades,” he said.
While expanding the market, LANXESS always regards sustainable development as one of its important strategies. In November 2019, the company announced its goal to lower its greenhouse gas emissions from around 3.2 million metric tons of CO2e today and achieve climate neutrality by 2040. So far, the implementation is on track. Compared with 2019, LANXESS has reduced greenhouse gas emissions in 2020 by 14 percent, or around 417,000 metric tons of CO2e.
