Page 122 - CW E-Magazine (5-3-2024)

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SPECIALITY CHEMICALS
LANXESS India to fi rm up capex plans in one year; German

parent eyes greater opportunities in Asia and North America

Cologne (Germany)-headquartered
speciality chemicals company, LANXESS,
which has undergone a radical trans-
formation from a synthetic rubber
focussed chemicals producer to one
driven on chemistry-intensive perfor-
mance chemicals, is planning to ramp
up its operations in India, which cur-
rently spans two sites – one in Jhagadia
(Gujarat) and the other at Nagda
(Madhya Pradesh).

LANXESS CEO, Mr. Matthias
Zachert, who was on his maiden visit LANXESS currently offers a limited “A healthy growth in China’s chemical
to India since taking over as CEO, range from its comprehensive port- market is key to the health of the global
noted in a select media interaction that folio of speciality chemicals under the chemical industry,” he noted.
LANXESS India Pvt. Ltd., the wholly- ‘Scopeblue’ label, representing pro-
owned subsidiary in India, has been ducts that are sustainably advantaged LANXESS has not been immune to
mandated to draw up plans for expan- compared to the rest of the market. the challenges facing the global chemi-
sion and capital expenditure. “I have These products have a carbon footprint cal industry, and has responded through
opened the doors to the treasury and that is less than half the industry stan- portfolio reorganisation and cost sav-
we expect the plans to be ready by next dard and use a majority of sustainable ings. Over the last few years, the com-
year,” he observed. raw materials, i.e., either bio-based or pany has pivoted to focus on mid-size
circular. The plan is to enhance this market opportunities – not large-volume
In a response to a poser by Chemical portfolio over the next 5-10 years by petrochemical-based ones, such as
Weekly, he confirmed that future further leveraging bio-based raw mate- synthetic rubbers. It has exited its joint
investments of LANXESS on a global rials and circular feedstock as well as venture with Saudi petroleum giant,
basis will be focussed on North America ‘green’ chemical processes and tech- Saudi Aramco (for synthetic rubbers),
and the growth markets of Asia, nologies. This is being done in a staged and, since then, built a portfolio of specia-
including India, while the company “will manner, with an eventual aim of giving lity chemicals catering to mid-size mar-
maintain and not shrink,” its capacities customers an option to choose between kets – through organic growth and ac-
in Germany. the ‘Scopeblue’ offerings and traditional quisitions – with a clear aim of taking
products across the portfolio. global leadership positions in markets
Sustainability as differentiator where companies of its size or smaller
Highlighting the challenging busi- ‘Unmatched demand weakness’ operate.
ness conditions in the global chemical Dwelling on the challenges facing
industry, and the pressures posed by the global chemical industry, Mr. Zachert LANXESS’ present portfolio now
commoditisation of many value chains, noted that the industry has been wit- spans consumer protection (personal
Mr. Zachert stressed that LANXESS is ness to unmatched demand weakness and home care), speciality additives
aiming to differentiate its offerings by in 2023, with few exceptions – India (serving industries such as rubber,
highlighting its global supply capabili- being one. The lack of adequate demand plastics, lubricants, etc.), advanced
ties, tailored to meet local market needs, recovery in China – the world’s largest intermediates (serving 32 different
and the sustainability advantages of its chemical market, accounting for nearly industries) and inorganics (notably iron
offerings. “In fi ve years, we will be half of global demand – has contributed oxide pigments).
green in many of our offerings and the in large measure to this, as have global
markets will recognise this,” he said. uncertainties and rising protectionism. The geographical focus has also

122 Chemical Weekly March 5, 2024

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