Production capacities increased at Wuxi

The new production buildings at the Lanxess Wuxi Chemicals Co Ltd site in Wuxi, China, were officially opened on February 28, 2005. This expansion will allow the company to significantly increase production capacities for leather chemicals. Production of synthetic tanning materials started in January 2005 and even the very first batch met the high quality requirements of the test laboratory. The company, originally founded as a joint venture with the Wuxi Dyestuff Factory, have been manufacturing leather chemicals since 1998, primarily for the Chinese market. In addition to synthetic and resin tanning materials, the portfolio includes auxiliaries for the wet end and finishing sectors. Speaking at the inauguration ceremony, Dr Bernhard Wehling, senior vice president of Lanxess's Leather Business Unit, explained why this expansion was so important: 'China is already the most important market for leather chemicals worldwide. The fact that Lanxess is one of the leading suppliers to this market is, therefore, a major achievement and proof of the dedication of our employees. Our aim is to continue to grow faster than the market in China, and that means it was necessary to expand our production capacities.' He added that, in addition to the traditional markets, namely the shoe and furniture industries, the use of leather in the automotive sector was a promising growth area. The two new production buildings on the Lanxess site in the Wuxi Industrial Park northwest of Shanghai were completed only 15 months after the decision to invest was taken. The first building is used for the synthesis of chemical products based largely on petrochemical raw materials from the region. The second, adjacent, building houses a high-performance spray dryer which converts the initial tanning material solutions into powder form. As a result, Lanxess now have considerable capacities for manufacturing powdered tanning materials from the Tanigan and Retingan ranges in China. At the same time, the new facilities will give the entire production sector in Wuxi greater flexibility, enabling the company to respond even more effectively to specific customer requests. 'It's not just our products that are in great demand in China', stressed Wehling, 'but also our technical know-how, our experience in developing products and processes and our knowledge of future market and fashion trends.' For this reason, new laboratories were constructed in Wuxi parallel to the expansion of production capacities. They will start operating in the next few weeks and will form the largest research and development center for leather products in the Asia-Pacific region. The Lanxess site at Wuxi is looked on as a model not just in China, but also in other countries. It obtained ISO 9001 and ISO 14001 certification in 2001 and 2002 and has received numerous accolades since going onstream in 1998. Dr Dongqi Hu, managing director of Lanxess Wuxi Chemicals Co Ltd, commented: 'We are particularly proud of the many awards we have received for our achievements in the fields of environmental protection and safety, the latest being the title of 'environment-friendly company', awarded by SEPA, the Chinese state environmental authority, in 2004.' He continued: 'We have always had a good working relationship with the state institutions and authorities here, and this was an important factor in securing the success of our current expansion project, enabling us to adhere exactly to our time and cost schedule.' The entire expansion project is in line with Lanxess's strategy of safeguarding sustainable, profitable growth through focused investment. It also underlines the importance Lanxess attaches to the Chinese market and in particular the Chinese leather industry. In China, Lanxess so far has three production sites, in Shanghai, Qingdao and Wuxi.