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Lanxess is strengthening its production network in China to meet the high level of demand for iron oxide pigments and is adding a mixing and milling plant to the pigment plant already under construction in Ningbo.
A total of approx 200 new jobs will be created with these two plants. Potential customers for the iron oxide pigments are the coatings, plastics, construction and paper industries. This brings the total investment at the Ningbo site from around €55M to in the region of €60M.
The new plant for iron oxide red pigments in Ningbo, built to the latest environmental standards, is being designed for an initial synthesis capacity of 25,000t/yr.
On the same site, the company is building the mixing and milling plant for pigments with a capacity of 70,000t/yr. This plant will also process raw pigments from other Lanxess sites for the Asian market. The plants are scheduled to be completed in Q4, 2015 and to start production in Q1, 2016.
At the same time, Lanxess will also close its existing mixing and milling operations in Taopu, Shanghai, with a capacity of 35,000t/yr by the end of 2016. Shanghai City Council will be integrating the vacated plant grounds into a high-tech park in Shanghai’s Putuo District.