The new production facility will have an initial capacity of 20,000 metric tonnes per year, and will produce high-tech plastics – Durethan and Pocan.
To produce Durethan and Pocan, basic polymers such as polyamide and polybutylene terephthalate are mixed and refined with additives in the compounding facility.
The facility represents an initial investment of EUR10m.
The construction of the facility is scheduled to commence in the second quarter of 2011 and the production is expected to begin in 2012.
In addition, LANXESS and US chemical company DuPont are planning to double the capacity of their joint compounding facility in Hamm-Uentrop, Germany.
The companies will invest an extra EUR10m for the facility, which will produce polybutylene terephthalate (PBT).
The facility is expected to become operational in 2012.