LANXESS: Rubber - Indispensable for China's Development

“Synthetic rubber is more promising in China than anywhere else in the world. This is not only because China’s current economy is the most dynamic in the world, but also because rubber is inevitably applied to all aspects of China’s future growth. This is what we We are committed to continuously participating in the future of China and playing a more important role in it." At the Chinese rubber day held in Germany at the end of the German LANXESS Group in Macau, Chairman of the LANXESS Management Board, He Deman, commented on the rapid development of rubber in China. The role. It is precisely because of this, LANXESS succeeded in hosting the first world rubber future last year. In 2010, China will be China's first hosting country for the National Rubber Day.

Rubber: Indispensable raw material

"100 years ago, Professor Richard F. Hoffman of Bayer, formerly of LANXESS, invented synthetic rubber. This was the beginning of the rubber revolution and it permanently changed the mobile world. The invention of synthetic rubber constituted a world of wheels. A huge global transportation system,” said He Deman.

Why does rubber play an increasingly important role in China's booming development? According to He Demang, huge growth trends are emerging in China, including urbanization, transportation networks, modern industrial production, and the rapid growth of the pharmaceutical industry. Rubber is in all these areas. All play a vital role. China is planning to build 20 new cities each year, which means a huge investment in infrastructure, and rubber products will be used for pipe sealing, wire coating, roofing, window and door coating, etc., and will become an integral part of China’s urbanization process. .

He Deman added that rubber is also an indispensable key factor in transportation prosperity. China has become the world's largest auto market and its future development is bright. By 2019, China's tire market is expected to grow nearly 4 times. In addition, industrialization also generates huge demand for rubber. For example, China uses long conveyor belts, endless pipes and seals to build factories and factories; synthetic rubber will also play a very important role in the development of alternative energy sources such as wind power and solar power generation. “The world has this future, but the rubber growth potential in other regions is obviously not as big as China.”

Innovation: The Guarantee of Future Development

He Deman pointed out that China was selected as the first national rubber day host country because China is very dynamic in the rubber industry, not only has huge growth potential, but also has great potential for innovation. In China, sustainable growth has only just begun. This future will be driven by innovation. This is also the reason why China Rubber Day put forward the theme of “innovation of science and technology and unlimited power”.

"Basically, 1% of GDP growth will bring about 2% of car growth. To achieve such a growth, we must not only rely on mature technology, we must develop new technologies and invent new products. Our goal is to achieve Synthetic rubber has become the most energy-efficient material. Because of our constant innovation in tire performance, energy-saving green tires can be put into production. For example, our latest synthetic rubber for high-performance tires can reduce tires. With a rolling resistance of 30%, we hope to develop new products with a 50% reduction in tire rolling resistance in the next few years. These technologies will reduce greenhouse gas emissions and reduce vehicle fuel consumption.” He Deman said, LANXESS has always been a leader in high-end rubber products. Enterprises, the application of rubber innovation is a key reason for LANXESS to succeed.

He Deman believes that one of the best ways to promote knowledge and innovation is to work with outstanding scientific talents in Chinese universities and research institutes. This can provide support for LANXESS products and meet the needs of Chinese customers who have always been concerned with innovation. Not long ago, LANXESS was awarded by the city of Qingdao for its outstanding contributions in the field of rubber R&D because of its cooperation with Qingdao University of Science and Technology.

Expanding production: meeting growing demand

He Deman stated that one of the important issues that customers care about is reliable supply. LANXESS is working hard to ensure sustainable supply. For example, butyl rubber, with an average annual growth rate of 3% in the world, but China’s annual average demand growth is about 5%, and the current production capacity is difficult to meet. For this reason, in May 2010, LANXESS started construction in Singapore to build the most advanced in the world. The butyl rubber production plant, the largest production facility in Asia, will be completed and put into operation in 2013 and will meet the needs of the Asia Pacific region by then. “In addition, we will not simply wait for the Singapore plant to go into production. At the same time, we will also increase Belgium’s butyl rubber production capacity by 10% to an annual production of 150,000 tons. After the Singapore plant is put into operation, LANXESS will be able to provide 400,000 annually. T-butyl rubber."

It is also known that LANXESS spends about 400 million euros each year on the "rubber kingdom". The goal is to increase production capacity by one-digit annual growth rate. LANXESS hopes to achieve profitable growth in Greater China by investing itself or acquiring other companies. LANXESS has signed a joint venture agreement with Taiwan Rubber to build a nitrile rubber plant in Nantong. LANXESS-Taiwan Rubber (Nantong) Chemical Industry Co., Ltd. will also begin production of nitrile rubber in 2012. In addition, LANXESS will also expand its polybutadiene rubber production capacity in Brazil, the United States, Germany and France.

He Deman stressed that the "BRIC" market is very important to LANXESS. One third of its turnover and profits come from the "BRICs" contribution. "Therefore, the Chinese market has a profound meaning for LANXESS and it is the key to our sustainable growth."

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