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| Thursday, October 16, 2008 00:27:19 |
Lansexx to transfer Texas chemical plant to China
Germany’s Lansexx AG said it is of surging demand to transfer the chemical plant from Texas to Shandong China, reported Wall Street Journal.
Chairman Axel Heitmann stated that the relocation is necessary for the strategic development of the company. It is also the mega trend of chemical industry that manufacturing firms have to be close to the customers who want fast delivery, efficient logistics as well as support to sales and marketing.
Lanxess's new plant, located at Weifang in the coastal province of Shandong, will produce 12,000 metric tons a year of hydrazine hydrate, a chemical with applications ranging from medicines to consumer products, cited Wall Street Journal.
The company took the unusual step of moving the entire facility to China from its original location in Texas. Heitmann said the relocation was cheaper and faster than building an entirely new plant. The project was paid for by Lanxess's joint venture with a Chinese company, Weifang Yaxing Chemical Co.
Lanxess AG is a supplier of chemical, plastics and rubber with annual sales in Asia rose 21% at 1.53 billion US in 2005.
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