Lanxess to shift Madurai production facilities to Guj

The largest European speciality chemicals company Lanxess is planning to shift its production facilities from Madurai in Tamil Nadu to its recently opened site in Jhagadia, Gujarat by the end of 2011.

The facilities, which make leather chemicals, material protection products and rubber additives, are being relocated since the contract with the Penar Group promoted Speciality Products Pvt Ltd (toll manufacturing unit) is due to expire this June, a press release said. Penar is the owner of the land and a majority of the workers at the site belong to it. Twelve employees are on the Lanxess India payroll and they will either continue to work for the company or find other options.

“We are confident that Penar is highly committed to find the best solutions for all employees,” said Joerg Strassburger, managing director and country representative.

The plant in Madurai, spread across 25 hectares with a production capacity of 12,000 metric tonne per annum, was started in 1997. This has been the strategic manufacturing base for Lanxess’s speciality chemical products in the Asia-Pacific region. The move will affect facilities manufacturing leather chemicals and material protection products in Tamil Nadu as well as products from its group unit Rhein Chemie, which makes and markets rubber products and additives.

“We will do all we can to minimise any potential disruption to customers during the relocation and will upgrade the facilities with the latest technology,” said Joerg Strassburger.

Lanxess, the chemical company spun off from Bayer of Germany, has invested about euro 60 million investments at the 18-hectare Jhagadia site. Production facilities for rubber chemicals and ion exchange resins are already in operation since 2010 and a hi-tech plastics facility will start up by 2012.