Lanxess (Leverkusen / Germany; www.lanxess.com) is investing EUR 55m in the expansion of its global pigments network with a new 25,000 t/y plant for premium iron oxide red pigments at Ningbo Chemical Park in the eastern coastal province of Zhejiang / China. The specialty chemicals producer already operates a 38,000 t/y plant for iron oxide yellow and black pigments in China at Jinshan, Shanghai. Other plants are located in Germany and Brazil.

The new facility is set to go on stream in Q1 2015, using an “improved and highly sustainable” Penniman process, and will support growth plans of customers in the area, said managing board member Rainier van Roessel. The investment “also underlines Lanxess’ position as a key supplier of innovative products for the megatrend urbanisation,” he added.

Initially, the new Chinese site will cover about seven hectares, with a plot of similar size reserved for potential expansion. Altogether, the People’s Republic accounts for about 10% of Lanxess’ total annual sales. Globally, the company has capacity to produce more than 350,000 t/y of inorganic iron oxide and chromium oxide pigments.