German Chemical Giant Boosts China Production with 50% Capacity Upgrade

German specialty chemicals company Lanxess has implemented a significant expansion and upgrade of its Rhein Chemie production base in Qingdao, China. The project is aimed at meeting the growing market demand for locally manufactured rubber additives.

The expansion increases the site's production capacity by 50% for both processing aids and pre-dispersed masterbatch lines. This capacity increase is being implemented alongside comprehensive technological upgrades. The facility's V4 production line manufactures processing aids, while the V8 line primarily produces pre-dispersed masterbatch products.

Dr. Luo Gaoming, President of Lanxess Greater China, stated: 'This investment will further strengthen our capabilities, enabling us to better serve Chinese customers with high-quality localised solutions. Robust market demand has driven this expansion, which aligns perfectly with our strategy of local production for local service.'

Zhang Lei, Head of Sales for Asia Pacific at LANXESS Rhein Chemie and General Manager of Rhein Chemie (Qingdao) Co., Ltd., remarked: 'This upgrade will deliver tangible benefits to our local partners, enhancing supply reliability while increasing production and operational flexibility. We remain steadfast in our commitment to innovation, sustainable development, and local value creation.'

Established in 1995, the Qingdao site has played a pivotal role in China's modern tyre and rubber industry development. Over the past three decades, it has introduced products including pre-dispersed chemicals, processing aids, and release agents, earning recognition for its focus on innovation, safety, and sustainability. In 2021, an eco-friendly rubber waste recycling solution developed at the Lanxess Qingdao facility was designated a 'Key Qingdao Municipal Enterprise Technology Innovation Project'.

Processing aids are specialised additives crucial for the production of tyres and industrial rubber goods. Their core function is to enhance rubber compounding, processing, moulding, and vulcanisation processes. By optimising these stages, they help manufacturers improve production efficiency, enhance product consistency, and elevate quality standards.

Pre-dispersed chemicals form the cornerstone of modern rubber processing technology. These products combine chemicals and polymers to achieve rapid and uniform dispersion within customers' rubber compounds, thereby simplifying operational workflows during production. Their use enhances the safety, efficiency, and consistency of rubber manufacturing.

It is reported that Lanxess' Qingdao facility was among the first enterprises to introduce such specialty chemicals to the Chinese market. This expansion and technological upgrade underscores Lanxess' development philosophy centred on localised innovation to meet customers' evolving needs.