German chemical and plastics producer Lanxess (Cologne; www.lanxess.com) announced it is to increase capacities for iron oxide pigments. At their plant in Krefeld-Uerdingen / Germany, production capacities for red and black pigments will be increased by around 23,000 t, from the current 280,000 t, by 2019. The company is also expanding capacities for yellow pigments by another 2,000 t/y at its site in Porto Feliz / Brazil. Lanxess recently expanded in China, by starting up operation of its site in Ningbo in the first quarter of 2016, which is designed for an annual capacity of 25,000 t for red pigments.

“The purpose of these investments is to support the growth of our customers,” says Jörg Hellwig, head of the Inorganic Pigments business unit. Beyond 2018, the company expects global demand for iron oxide pigments to grow by 3% per year, due to strong growth in countries like India and the recovery of the building industry in North America and parts of Europe. China will also contribute to this development with growth rates remaining at a high level. “By 2025, we expect global annual growth in the demand for iron oxide to reach an average of 4%. We believe in particular that the demand for high-quality pigments with uniform global standards will increase,” adds Hellwig.

China is the largest producer of synthetic iron oxides with over 50% of total global supply, however, the number of production locations has been steadily decreasing for several years. This is due to the implementation of environmental regulations by both pigment manufacturers and the pigment processing industry. The number of synthetic iron oxide production locations has halved since 2008, resulting in a reduction in supply, particularly for red pigments.