German specialty chemicals company LANXESS held the Opening Ceremony for its APAC Application Development Center (AADC) at Shanghai Chemical Industry Park (SCIP) on June 18. The new center substantially increases the company’s local innovation capabilities. Initially, it combines the research activities of the Business Units Polymer Additives (PLA), Lubricant Additives (LAB), and Urethane Systems (URE). The AADC is the first project put into operation at SCIP’s new InnoGreen Shanghai International Chemical New Materials Innovation Center.
Ming Cheng Chien, President of LANXESS APAC Region, Thomas Triller, Acting Consul General of the Federal Republic of Germany in Shanghai, Shousheng Li, Chairman of China Petroleum and Chemical Industry Federation (CPCIF), Jing Ma, Director of Shanghai Chemical Industry Park Administration Commission (SCIPAC), and Dr. Anika van Aaken, Head of the AADC, were among those attending the ceremony. LANXESS Chairman of the Board of Management Matthias Zachert and Board Member Dr. Anno Borkowsky joined online.
“We are proud of being the first company to settle at the InnoGreen Shanghai International Chemical New Materials Innovation Center. The AADC will enhance our local innovation and strengthen our confidence in the Chinese market, and ultimately serve our customers in the entire Asia-Pacific region,” said Ming Cheng Chien, President of LANXESS Asia Pacific.
“Today marks an important milestone in our history in China. Our operations here are central to our global strategy, and we are grateful for the long-term partnerships we have forged in this country,” Matthias Zachert said in his speech. “China is a nation of opportunity, and we are always seeking new ways to support and participate in its growth and prosperity.”
“This Application Development Center was built to strengthen our starting position to address several strategically vital markets,” Dr. Anno Borkowsky said in his speech. “And being here only one year after the groundbreaking, we have done so with significant speed. With the AADC, we are taking another vital step towards being able to benefit from the growth potential in the world's largest chemical market.”
The establishment of the AADC also underlines LANXESS’ confidence in China’s growth potential. As the world’s largest chemical market, China already accounts for 40 percent of global chemical sales, and the figure will approach 50 percent by 2030.
To meet the growing market demand, LANXESS has increased its presence in China and enhanced its market position in the entire Asia-Pacific region through continuous investment. In 2018, the company launched a new regional setup in the Asia Pacific region, covering Greater China, Japan, South Korea and the ASEAN countries to promote synergies between countries and business units.
In September 2019, LANXESS signed an MOU with SCIP to set up an integrated site as a new base for sustainable growth in China. Two months later, the company announced its plan to establish a comprehensive application development center to strengthen its innovation capabilities in China and the Asia-Pacific region. This came as the need for localized product grades increased due to shifting demand toward value added products in China. In March 2020, LANXESS announced that the AADC would be located at SCIP. The delivery of the AADC building took place in December 2020.
Thanks to the continuous presence in China, the region was the only market with strong demand in the Asia-Pacific region during the pandemic. The sales in Greater China in 2020 accounted for 14 percent of LANXESS’ total global sales.