Lanxess AG, the German chemical maker spun off from Bayer AG, said the Chinese market will continue to be its biggest growth driver in Asia.
"Our China sales in the second quarter of this year have seen strong growth of 18 percent compared with last year. In fiscal 2006 our sales in China grew by double digits to around 330 million euros," said Axel Heitmann, chairman of the Lanxess board of management.
The company's China sales account for almost 27 percent of its Asia sales, he said.
Lanxess is zeroing in on the Asia-Pacific region under a new strategy launched last year. Its sales for the region increased to 1.23 billion euros in 2006, accounting for 18 percent of the company's worldwide total.
Last year its semi-crystalline products unit opened a testing center for hi-tech plastics in Wuxi, in East China's Jiangsu Province.
The center's second production line will come onstream in the fourth quarter and is set to double capacity.
A research center is also on the cards for the company's technical rubber products unit in Qingdao, in East China's Shandong Province.
"The increase in our production capacity and the strengthening of research and development in China means that we are even better equipped to meet the demands of the Asian markets and are able to secure further competitive advantages for ourselves through innovative solutions," said Heitmann.
Lanxess separated from German chemical and pharmaceutical company Bayer three years ago. Heitmann said Lanxess has seen rapid growth by reducing internal costs, restructuring its loss-making businesses and adjusting its portfolio and acquisitions.
"The first three strategic steps, in combination with profitable organic growth, was and continues to be clearly the right strategy for Lanxess. In addition, at the end of 2006 we started phase four - to further our growth through acquisitions," he said.
Source: China Daily
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