Lanxess has completed the first phase of construction of its new site in Jhagadia, Gujarat state, India. The production of the rubber chemicals plant was started up, as planned, after being relocated from Thane, Maharashtra state.

The plant features the latest technology and was constructed over a period of less than two years, the company said in a statement. It will supply the global rubber and mineral oil additive market as well as the rapidly growing Indian tire and rubber industry with high-quality antioxidants.

The company said the expansion of the tire market in India is being driven by the mega-trend towards greater mobility among the growing middle-class in the country. At the same time, major tire manufacturers are expanding production capacities in the local market.

Lanxess is investing about €50 million in total at the 13 hectare Jhagadia site, which will also include a new ion exchange resins plant. This plant is on schedule to start up production this year and will employ about 250 workers.

The ion exchange resins plant will manufacture products for industrial water treatment, for the semiconductor and pharmaceutical industries, for food production and for power generation. There is a growing demand for clean water due to a booming population and the trend towards urbanization in India.

The site is part of the newly-developed Jhagadia Chemical Park. The park, which is a project supported by the local government, is the home to other large companies and provides the necessary infrastructure required for operations. For example, there is an inland waterway to the international seaports of Nhava Sheva and Kandla on India's west coast.