LANXESS to relocate Thane plant to Gujarat

As part of its growth strategy, LANXESS India Private Limited (LIPL) will relocate its rubber chemicals (RUC) plant from Thane in Maharashtra to the proposed project at Jhagadia near Vadodara in Gujarat.

The headquarters of LANXESS India, however, will remain at its present location in Thane.

The new state-of-the-art plant at Jhagadia is expected to enhance competitiveness and increase job opportunities, while production activities of RUC in Thane will be phased out stepwise by 2009, according to a company release.

Guarding the interests of its present employees, LANXESS India management will have discussions with union representatives on the transfer options to Gujarat and other alternatives.

Joerg Strassburger, MD, LANXESS India and India representative, said, "The relocation decision and investment in world scale ion exchange resins plant at Jhagadia has improved the positive business outlook for LANXESS in India, and it shows the confidence of LANXESS AG Board in the development in India. We will continue our growth strategy and will invest in new projects wherever we see business opportunities in India."