Written on 07.09.2012 - Industry
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Lanxess to build world's largest EPDM plant in China

Lanxess is investing EUR 235 million in a new EPDM plant with a capacity of 160,000 t/y in Changzhou (Jiangsu Province), China. According to Lanxess, this is the largest investment the company has made in China to date. 200 new jobs will be created. The plant is expected to start up in 2015. All necessary permits have been obtained from the local authorities, says the company.

The new EPDM plant will be located at the Changzhou Yangtze Riverside Industrial Park. It will be supplied with the key raw materials ethylene and propylene from a methanol-to-olefins (MTO) plant currently under construction at the site. Lanxess will use the Keltan ACE technology at its new plant, which the company gained access to with the acquisition of DSM Elastomers in 2011. The process enables, for example, the manufacture of new EPDM rubber grades, such as oil-extended EPDM and special high molecular weight EPDM. The new plant will produce in total ten grades of EPDM tailored to Chinese customer needs.

Lanxess already operates EPDM production sites in Geleen, the Netherlands; Marl, Germany; Orange, USA; and Triunfo, Brazil, with a combined capacity of 320,000 t/y.

According to the company, global demand for EPDM is expected to increase by more than 4 % per annum in the coming years, while demand in China is expected to grow by around 8 %, driven above all by automotive and construction industries. China will also continue to be the largest net importer of EPDM in the coming years, says Lanxess.