January 22, 2010

LANXESS builds new plant in Germany

EUR 30 million invested in new chemical production facility in Saxony-Anhalt – 200 new jobs created

 

LANXESS is building a new chemical plant at its site in Bitterfeld, Germany. This marks the specialty chemicals group’s move into a new segment of the water treatment business. The company is investing a total of around EUR 30 million in this pioneering project. LANXESS plans to develop and produce membrane filtration technology in Bitterfeld. The State of Saxony-Anhalt is sponsoring this project by up to EUR 6 million. In the long term, this project will create 200 new jobs at the Bitterfeld site. The new plant is scheduled to be taken into operation for a pilot and development phase towards the end of this year. As things stand today, the first products should be launched on the market in 2011. An area totaling some 4,000 square meters has been set aside for the creation of high-tech laboratories, logistics areas, offices and a new, state-of-the-art production facility.

 

The membrane technology is used to filter out unwanted substances from water. The membrane’s chemical composition and structure make it possible to filter out substances such as nitrates, pesticides, herbicides, viruses, bacteria and the smallest particles. By moving into this new field of technology, the Group is opening up further areas of application in water treatment. The volume of the global membrane market alone is currently estimated at around EUR 1 billion, and this figure is set to rise further.

 

Key commitment to Germany as a business location

 

“Usable water supplies are dwindling worldwide, thus becoming an increasingly valuable resource. Thanks to LANXESS’ pioneering investment in Bitterfeld, we are now able to offer additional products for water treatment and thus further strengthen our strong market position,” explained Axel C. Heitmann, Chairman of the Board of Managment of LANXESS AG, at a groundbreaking ceremony held on January 21 in Bitterfeld.

 

The LANXESS site in Bitterfeld is already equipped with state-of-the-art facilities and a first-rate infrastructure. “It was these excellent conditions and the planned partnerships with universities and colleges in the local area that gave Bitterfeld the edge over other sites, such as the ones in Spain and Singapore,” added Heitmann. The construction of the new plant goes hand in hand with an extensive research and development program that LANXESS is setting up at the site and in the local region. “The fact that Bitterfeld has been chosen as the location for this project shows that Germany can hold its own as a business location in the face of tough international competition. This is due primarily to the country’s expertise and high-performance technologies. This investment is a further sign of our future commitment to both the chemical industry in Germany and our chemical site in Bitterfeld.” This year alone, LANXESS is planning to invest approximately EUR 150 million in its German sites, up slightly on investments in the previous year.

 

You can find more detailed information about the groundbreaking in the _Press Release.