Lanxess expects China sales to grow 7-8% per year

Shanghai, July 20 (Gasgoo.com) German chemicals giant Lanxess expects its sales growth rate to increase 7-8% every year in China's synthetic rubber market in the next five years given that China has now become the world's largest auto and auto tire markets, media reported today.

In 2009, Lanxess's global sales reached approximately $5.06 billion euros ($6.6 billion), of which the Asia-Pacific region contributed 1.1 billion euros. Meanwhile, China contributed 584 million euros accounting for half of sales in the region, reflecting an average annual growth rate of 14.8%.

In May, Lanxess, the world's leading producer of synthetic rubber, announced a plan to invest $50 million in establishing a nitrile rubber- making venture in Nantong city, Jiangsu province, China.

In June, Lanxess broke ground for the construction of a new butyl rubber plant in Singapore, which would also serve the Chinese market.

Apart from that, the company has recently created a research and development center in Qingdao, Shandong province, with a total investment of $16 million.

At present, Lanxess is working closely with the Qingdao University of Science and Technology (QUST) to develop high quality and eco-friendly products, prepare the commercialization of future inventions, and train staff with advanced technical expertise to meet the needs of customers in China.