MOSCOW (MRC) -- Germany’s Lanxess has agreed to form a 50:50 marketing and joint venture with China’s Chongqing Changshou Chemical to exclusively handle Chinese distribution of chloroprene rubber and adhesive grades manufactured by the two companies, said Chemanager-online.
The transaction subject to approval by the relevant authorities is expected to be completed in first half of 2016. The new distribution firm will combine Lanxess’ chloroprene portfolio with Chongqing Changshou’s sales channels and product range, said Jan-Paul de Vries, head of the German company’s high performance elastomers business unit.
Lanxess produces polychloroprene, marketed under its Baypren brand, at Dormagen, Germany. The rubber grade is used in cable sheathing, railway transport and vibration-isolation applications to provide resistance to weathering, oil and heat and impermeability to gases.
In China, the world’s largest chloroprene rubber market, demand for polychloroprene is expected to grow in tandem with the advancement of urbanization and the growth of China’s automotive industry and railway transportation network, said Ming Cheng Chien, CEO of Lanxess Greater China.
As MRC informed earlier, Lanxess has developed a further high-tech heat stabilizing system for Durethan polyamides - XTS3 (Xtreme Temperature Stabilization). It is aimed primarily at applications in the electrical and electronics sectors and under the hood, particularly in the oil circulation system.
Lanxess is a leading specialty chemicals company with sales of EUR 8.0 billion in 2014 and about 16,600 employees in 29 countries. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC