German LANXESS Acquires Chemical Company in China

Further milestone in company’s BRIC strategy

Shanghai – The specialty chemicals company LANXESS AG is strengthening its market presence in the important Asia region by acquiring the business and production assets of Jiangsu Polyols Chemical Co., Ltd. in Jiangsu province, China. Both parties have agreed not to disclose the purchase price. Closing is expected in the third quarter of 2009.

Jiangsu Polyols mainly produces trimethylolpropane (TMP) that is used in lubricants, paints and coatings. LANXESS’ business unit Basic Chemicals is already a major supplier of TMP in China and will integrate Jiangsu into its global operations.

"This is a further milestone in our long-term growth strategy for BRIC countries, " said Axel C. Heitmann, Chairman of the LANXESS Board of Management, “In addition, we are underlining our commitment to the important Chinese market in these difficult times.”

The Chinese medium-sized company, which was founded in 2006, is located in Liyang, west of Shanghai. Jiangsu Polyols achieved sales of about EUR 10 million in 2008 and currently employs some 170 staff at a facility with competitive technology.

With some 1,000 employees worldwide, the LANXESS Basic Chemicals business unit is one of the leading manufacturers of raw materials for agrochemicals, polymers, surface coatings and pigments. It operates several production sites in Germany, China and the United States. The Basic Chemicals business unit belongs to the Advanced Intermediates segment, which achieved total sales in 2008 of EUR 1.3 billion. The segment has proven to be one of LANXESS’ more stable businesses in the economic crisis due to its exposure to the agrochemical industry.

During a press conference in Shanghai, Martin Kraemer, CEO of LANXESS Greater China, remarked: “This acquisition is another step in strengthening our leading businesses here in China –and further proof of our successful China strategy. We are extending our employee and production base along our path of long-term, sustainable growth.”

Jiangsu Polyols is LANXESS’ second acquisition in China following the takeover in June 2008 of the largest and most modern plants for yellow iron oxide pigments in China from Shanghai Jinzhuo Chemicals Company Ltd. in Jinshan near Shanghai. This strengthened the market position of the LANXESS Inorganic Pigments business unit, ensuring an independent supply of raw materials.

LANXESS also announced that it has acquired the businesses and assets of stock-market-listed Indian company Gwalior Chemical Industries Ltd. for EUR 82.4 million, including debt.

This is LANXESS’ first acquisition in India and further strengthens the portfolio of the Basic Chemicals business unit. Gwalior is one of the largest Indian producers of benzyl products and one of the leading global producers of sulphur chlorides for the agrochemicals, pharmaceutical, dyestuff as well as flavor & fragrance industries.

LANXESS is a leader in specialty chemicals with sales in 2008 of EUR 6.58 billion and currently around 14,600 employees in 23 countries. The company is represented at 44 production sites worldwide. The core business of LANXESS is the development, manufacture and sale of plastics, rubber, intermediates and specialty chemicals. More information at http://www.lanxessgoesasia.com

Information for editors:
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Maggie Tan
Corporate Communications
LANXESS Pte Ltd
9 Benoi Sector, Singapore 629844
Tel       (65) 6725 5888
Direct   (65) 6725 5821
Mobile (65) 9186 3323
Fax      (65) 6264 5329
Email   maggie.tan@lanxess.com
Web: http://www.lanxess.com/http://www.lanxessgoesasia.com/

This release was published on openPR.