LEVERKUSEN/SHANGHAI – With its first acquisition in China, specialty chemicals company LANXESS AG is expanding the Asian business of its Inorganic Pigments business unit. LANXESS is to acquire two production units from its previous cooperation partner Jinzhuo Chemicals Co. Ltd., one of which it had already leased since 2007. With the acquisition, LANXESS will expand its global production capacity for inorganic pigments by five percent. 

 “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 takeover 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.  

Demand for the Inorganic Pigments business unit's products is rising sharply as a result of the ongoing construction boom in China. In the next few years, growth rates of around five percent are expected, especially in Asia.  

The site started producing iron oxide yellow pigments last year and has a total capacity of 30,000 metric tons per year. 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.