LANXESS Strengthens Presence in China by Acquiring Polyol Specialist

LANXESS AG is strengthening its market presence in the important Asia region by acquiring the business and production assets of Jiangsu Polyols Chemical Co., Ltd. (PCC) in Liyang, Jiangsu province, eastern China. PCC engages in producing polyol family products containing proprietary calcium process technology, including 15 000 tons per year (tpy) trimethylolpropane (TMP), 2 000 t/a di-TMP, 2 500 tpy cyclic trimethylolpropane formal (CTF) and 10 000 tpy calcium formate, to serve China’s lubricants, paints, coatings and printing as well feed additives markets. LANXESS’ business unit Basic Chemicals is already a major supplier of TMP in China. We are extending our employee and production base along our path of long-term, sustainable growth,” remarked Martin Kraemer, CEO of LANXESS Greater China during a press conference in Shanghai on June 11th. PCC is LANXESS’ second acquisition in China following the takeover in June 2008 of the largest and most modern plants for yellow iron oxide pigments in China from Shanghai Jinzhuo Chemicals Company Ltd. in Jinshan near Shanghai. LANXESS also announced that it has acquired the businesses and assets of stock-market-listed Indian company Gwalior Chemical Industries Ltd. for €82.4 million (US$116.32 million), including debt. This is LANXESS’ first acquisition in India and further strengthens the portfolio of the Basic Chemicals business unit. (June 26, 2009)