German Chemical Producer Lanxess Eyes Brazil for Expansion Projects

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--German specialty chemicals producer Lanxess AG (FRA:LXS) (Leverkusen, Germany) is planning to invest in two new projects to increase production capacity at the company's site in Porto Feliz, Sao Paolo, Brazil. Once the projects have been executed, the site will be a major specialty chemical hub with the latest technology.

The German company owns and operates four production sites in Brazil and is currently planning to expand its site in Sao Paulo. Lanxess plans to add a new engineering plastics unit that will have a production capacity of 20,000 metric tons per year. The materials will be used by the automotive industry to make cars more efficient and lighter. The facility is planned to go on-stream in mid-2013.

At the same site, Lanxess is planning the construction of a rubber additives unit with a planned production capacity of 170,000 metric tons per year, which is due to start its production in early 2013. Both projects will require an investment of approximately $40 million.

Lanxess' site in Triunfo is also being considered for expansion and upgrade investments. The company is planning the construction of new synthetic rubber production units and two production lines. This undertaking would require a $3 million investment.

Last year, Lanxess doubled the production capacity of the facility that the company owns and opertes in Cabo de Santo Agostinho, in northeastern Brazil, to 40,000 metric tons per year of its neodymium polybutadiene rubber (Nd-PBR). The company is now using the same process and technology used at other sites in other Nd-PBR plants in Germany and the U.S.

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