Rhein Chemie production to move from Madurai to Jhagadia

ERJ staff report (DS)

Madurai, Tamil Nadu, India -- Lanxess' production facilities in Madurai, Tamil Nadu state are to be closed and production will be moved to the company's recently-opened site in Jhagadia, Gujarat state. This will affect facilities manufacturing leather chemicals, material protection products as well as products from Rhein Chemie.

The move will take place during 2011. At the same time, the company said it plans to upgrade the facilities with the latest technology.

Lanxess' contract with the Madurai site owners Penar will expire in June, 2011. LANXESS has had a strong partnership with the owners over the last six years. The majority of the workers at the site belong to Penar. Some twelve employees are on the Lanxess payroll. They will either continue to work for the company or find other options.

Lanxess site in Jhagadia represents an investment of EUR 60 million for the company to date. Production facilities for rubber chemicals and ion exchange resins are already in operation since 2010 and a high-tech plastics facility will start up later by 2012.

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Press release from Lanxess