LANXESS: New Jhagadia site up and running
03/04/2010

• Successful start up of rubber chemicals plant
• Construction of ion exchange resins plant on schedule
• Indian domestic market driving demand for high-quality chemical products

Online PR News – 04-March-2010 – – Mumbai, 4th March 2010 –The specialty chemicals company LANXESS has completed the first phase of construction of its new site in Jhagadia, Gujarat state, India. The production of the rubber chemicals plant was started up, as planned, after being relocated from Thane, Maharashtra state.

The plant features the latest technology and was constructed over a period of less than two years. It will supply the global rubber and mineral oil additive market as well as the rapidly growing Indian tire and rubber industry with high-quality antioxidants belonging to LANXESS’ Vulkanox® brand.

The expansion of the tire market in India is being driven by the mega-trend towards greater mobility among the growing middle-class in the country. At the same time, major tire manufacturers are expanding production capacities in the local market.

“The Jhagadia site will become LANXESS’ largest production site in India and highlights our long-term commitment to the growing domestic market as well as our Group’s BRIC strategy,” said Luis López-Remón, Head of the Rubber Chemicals business unit at a media event. “With the plant, LANXESS stands out as the only Western company to be manufacturing rubber chemicals in India.”

LANXESS is investing about EUR 50 million in total at the 13 hectare Jhagadia site, which will also include a new ion exchange resins plant. This plant is on schedule to start up production this year and will be the most modern of its kind in Asia. Some 250 workers in total will be employed by LANXESS at the site.
The ion exchange resins plant will manufacture products for industrial water treatment, for the semiconductor and pharmaceutical industries, for food production and for power generation. There is a growing demand for clean water due to a booming population and the trend towards urbanization in India.

The LANXESS site is part of the newly-developed Jhagadia Chemical Park. The park, which is a project supported by the local government, is the home to other large companies and provides the necessary infrastructure required for operations. For example, there is an inland waterway to the international seaports of Nhava Sheva and Kandla on India’s west coast

LANXESS itself will operate a natural gas-based cogeneration plant to supply steam and electricity to the rubber chemicals and ion exchange resins plants. In addition, the company is building a modern wastewater treatment plant to ensure all used water from the plants is discharged well within environmental limits.

The Rubber Chemicals business unit (RUC) is one of the world’s leading manufacturers of rubber chemicals, which help improve the service life and properties of synthetic rubber. With production sites on four continents, RUC predominantly supplies tire manufacturers and the producers of technical rubber goods. Other major customers include companies in the cosmetics and pharmaceutical industries as well as mining industry. The Vulkanox® brand of common antioxidants protect rubber goods – particularly those made of unsaturated elastomers – from gradual degradation through contact with oxygen, ozone or heat. Vulkanox thus protects rubber from premature material fatigue, crack formation or embrittlement. RUC belongs to LANXESS’ Performance Chemicals segment, which achieved sales of EUR 1,148 million in the first nine months of 2009.

About LANXESS
LANXESS is a leading specialty chemicals company with sales of EUR 6.58 billion in 2008 and currently around 14,600 employees in 23 countries. The company is represented at 43 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.

Mumbai, March 3, 2010

Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

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