Lanxess is expanding its global production network for high-tech plastics and broke ground for a new compounding facility in North Carolina on Wednesday.  Additionally, Lanxess and U.S. chemical company DuPont will double the capacity of their joint compounding facility in Hamm-Uentrop, Germany. 

The capacity expansions reflect the growing demand for high-tech plastics being driven above all by rising car production and the trend towards lighter automobiles. The global demand for high-tech plastics is expected to increase by roughly seven percent per year through 2020.

Groundbreaking For First Production Facility In North Carolina, USA

The new production facility in Gastonia, North Carolina, will have an initial capacity of 20,000 metric tons per year. It will be the first compounding facility for the Lanxess high-tech plastics Durethan and Pocan in the United States. Basic polymers, such as polyamide and polybutylene terephthalate, are mixed and refined with additives in the compounding facility to produce Durethan and Pocan as per customer needs.

The facility represents an initial investment of €10 million and is expected to create up to 55 new jobs locally. Construction is expected to commence in the second quarter of 2011 and production is scheduled to begin in 2012.  

"The U.S. is the largest market for high-tech plastics, with the automotive industry at the forefront. It is here that increased CAFE fuel efficiency standards are driving demand for these advanced materials," said Werner Breuers, Member of the Board of Management of Lanxess.

The Corporate Average Fuel Economy (CAFE) regulations aim to improve the average fuel economy of cars and light trucks sold in the United States.

The automotive industry is the largest customer for the Semi-Crystalline Products (SCP) business unit, which produces Durethan and Pocan. These highly innovative products allow for the design of lighter-weight plastic parts to replace metal parts in automobiles, contributing to fuel efficiency and reduced emissions. In addition, Durethan and Pocan enable carmakers and car parts suppliers to achieve considerable savings through cheaper production and easier assembly.

Doubling Of Compounding Capacity In Hamm-Uentrop, Germany 

Lanxess and U.S. chemical company DuPont plan to double the capacity of their joint compounding facility for polybutylene terephthalate (PBT). The partner companies will invest an extra €10 million in the facility in Hamm-Uentrop, Germany. The expansion is expected to create nine new jobs in addition to the 70 positions already in existence. Production is scheduled to begin in 2012. The plant is one of the largest of its kind in the world and was opened in 2004.

The strengths of PBT are its high rigidity, impact strength and heat resistance. It is an electrical insulator, resistant to abrasion and wear, and has outstanding dynamic load strength. Typical applications include plug connectors, lamp sockets and engine housings. A new field of application with particularly good growth prospects is that of large-sized add-on parts for truck cabs, such as fenders, wind deflectors and radiator grilles. Special PBT grades with a high content of glass fibers for even greater rigidity are playing an increasingly important role in the substitution of metals and thermosetting plastics. 

Global High-Tech Plastics Production Network

Lanxess has made a series of investments in its global high-tech plastics network in the last 12 months. In January, Lanxess broke ground on a new facility in Jhagadia, India. With an initial capacity of 20,000 metric tons per year, the new compounding facility will start producing the high-tech plastics Durethan and Pocan at the beginning of 2012. The investment of more than €10 million will create 60 new jobs. The company is also investing €10 million to increase the annual capacity of its facility in Wuxi, China, to approximately 60,000 metric tons per year by mid-2011.  

With its investments in the U.S. and Asia, together with its site in Krefeld-Uerdingen, Germany, the company has further strengthened its global market position for Durethan and Pocan. The company also recently invested €35 million to expand production of the plastic precursor caprolactam at its site in Antwerp, Belgium. Production will increase by 10% from its current volume of 200,000 metric tons per year.