Lanxess brings butyl expansion on stream, begins second phase at Sarnia

Leverkusen, Germany - In addition to planning a huge factory for butyl rubber in Asia, Lanxess AG has begun a second expansion of its butyl rubber pant in Sarnia, Canada.

The company said on Friday that it has begun a second phase of the Sarnia expansion, which will add ten percent to the plant's output by 2009. The first phase - a 42 percent capacity expansion to about 135 kt/year - is now complete, said Lanxess. ERJ estimates that the Sarnia plant will have capacity for about 150 kt/year after the latest expansion is completed. Lanxess said no other butyl plant in the world currently has capacity for 150 kt/year.

The Asia/Pacific region is Lanxess´ fastest-growing market for butyl. In 2004, 30 percent of the company´s butyl revenues came from the region. In 2007, it will be about 40 percent, according to Ron Commander, managing director of the firm´s butyl business.

“We are highly committed to the future of butyl rubber,” Dr. Axel Heitmann, chairman of the board of management, Lanxess said at the dedication ceremony of the expanded Sarnia facility. “With the capacity expansions we are boosting our profitable growth in this innovative business segment.”

The butyl rubber business unit is a leading manufacturer in its field and belongs to the performance rubber segment within Lanxess, which achieved total sales of €1776 million in 2006.

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Press release from Lanxess

McGuinty Government Congratulates LANXESS On Major Ontario Expansion Press release from Ontario government (Canada)