Lanxess, a spin-off from Bayer AG, is considering investing in rubber projects in China, and the Yangtze Delta is a good place for the investments, the firm's senior officials said yesterday in Shanghai.
"We are in the process of negotiating with partners to set up joint ventures to make rubber," said Wang Yongli, Lanxess' country representative in China. "We are considering several projects as part of our expansion plans, with each investment valued up to US$200 million."
Now Lanxess has three manufacturing plants in China's mainland.
"We expect to increase the number of plants in the country in the near future since Lanxess is committed to China."
Li Zhipeng, an analyst with Xiangcai Securities Co Ltd, said China's booming auto sector will secure the investment returns.
Lanxess was formed from Bayer's former chemical and part of the polymer divisions. The divisions were spun off from Bayer late last year. Bayer MaterialScience is responsible for the rest part of polymer business for Bayer AG now.
Bayer MaterialScience also aims to focus on China, its fastest growing market, and to double sales here in 10 years, said company executive Juergen Raab.