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LANXESS steps up the pace in China

Published on 2005-10-28. Author : SpecialChem

LEVERKUSEN/BERLIN -- LANXESS AG is stepping up the pace in the rapidly growing Chinese chemicals market. This was announced by the company's Management Board Chairman Dr. Axel Heitmann at this year's "Wirtschaftswoche" Congress entitled "China 2005 - Partner or Rival?" in Berlin. The company had already announced a number of expansion projects that could have a positive effect on the result in 2006.

The company's wide-ranging China offensive is having a direct influence on its human resources policy in China. At present, LANXESS employs about 590 people in China, and a further 250 are likely to be added in 2006. The number of Chinese employees is currently growing at an average of over 30 percent a year - with some of the recruits also destined for employment abroad. Heitmann: "In effect, this means that our top Chinese staff have very good future prospects with us to occupy positions anywhere in the world." The company is able to benefit from the fact that the level of training of the Chinese candidates is already very good. For employees in China with management potential, LANXESS is also offering periods abroad and trainee programs.

Management trainee program for Chinese candidates

LANXESS has just launched a management trainee program for young Chinese people who want to study in Germany and afterwards work for LANXESS in China. The selected candidates are being offered contracts with working stays in Germany and subsequent employment in China.

The company wants to strengthen its involvement in the Chinese market by having the best employees and a well thought-out strategy. By next year, many expansion projects will have been completed:

  • In a joint venture, LANXESS will become one of the first foreign companies to produce an antioxidant for rubber in China. A new facility is being built in Tongling, Anhui Province.
  • With an investment of some EUR 20 million, LANXESS is currently building a new production plant for high-tech engineering plastics at its Wuxi site. The first part of the new expandable facility is due to go on stream in the spring of 2006.
  • A joint venture with the Weifang Yaxing Chemical Company Ltd. will enable LANXESS to become a leading company on the Chinese market for hydrazine hydrate, an intermediate product for the chemical, agrochemical and pharmaceutical industries. As part of the joint venture, a complete production plant in the United States was dismantled and shipped to China, where it is currently being erected again in Weifang, Shandong Province
  • LANXESS's subsidiary Rhein Chemie, based in Mannheim, will double its production capacity for polymer-bound chemicals (Rhenogran) with a new facility at the Qingdao site.

China is an important technology location, too

Apart from its production activities, LANXESS will also strengthen its technical expertise in China. Only recently, the Technical Rubber Products Business Unit opened a new technology center in Shanghai for the further development of technical-grade rubber. This gives the company a second development center in the Shanghai area, because in nearby Wuxi, LANXESS runs the biggest research and development center for leather products in Asia. "China is also gaining increasing importance for us as a technology location," said Dr. Heitmann.

Forward-looking statements

This news release contains forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future consolidated results, financial situation, development or performance of the company, and the estimates given here. The company assumes no liability to update such forward-looking statements or to adapt to future events or development.

Source: LANXESS AG


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