Leverkusen - Chemicals group LANXESS is investing more than EUR 20 million to expand production capacities in Germany.

At its Krefeld-Uerdingen site, the LANXESS Semi-Crystalline Products (SCP) business unit is spending around EUR 12 million expand the production of polyamide-6 for its Durethan^® engineering plastic. The enhanced unit is scheduled to come on stream in early 2007 and would give LANXESS one of the world’s largest production facilities for polyamide-6. In the coming five years, the company is aiming for a 50-percent increase in sales of its high-tech plastics Durethan^® and Pocan^®.

At its Dormagen site, LANXESS has invested more than EUR 10 million in an entirely new facility to manufacture Velcorin^®, a cold sterilant for beverages, for the Material Protection Products (MPP) business unit. Test operation has been successfully completed and the facility can now start regular production. This expansion of capacity is in response to growing demand from the beverage industry, especially in North America and western Europe. Until now, LANXESS produced Velcorin only in Uerdingen. With the second unit, the company aims above all to grow its market position outside Europe.

The high-performance polymers manufactured in Krefeld-Uerdingen are used in the electrical, electronics, household appliance and, above all, automotive applications. One use of Durethan^® is in hybrid technology, an innovation patented by LANXESS which combines steel and plastic in a new component. This technology couples the benefits of both materials, helping make cars both lighter and safer.

Velcorin^® is already approved for use in many countries, where it has proven its reliability and high quality. Pending registration in Latin America and Asia offers interesting growth opportunities for this product.