Expansions: Lanxess invests EUR30 mn in expansion of high-tech plastics output in China; Songwon to increase semiconductor chemicals

German speciality materials company Lanxess will expand its production network in China, by building a second compounding line for Durethan PA6 and Pocan PBT engineering plastics at its manufacturing site in Changzhou. An investment of around EUR30 million will increase the capacity in Changzhou by 30,000 tonnes/year. Together with existing facilities in Changzhou and Wuxi, this will bring the company’s total compounding capacity in China to 110,000 tonnes/year. The new line is planned to go on stream in the first quarter of 2023.

“This expansion caters to the strong demand we experience from the growing Chinese automotive industry. As e-mobility is booming, it is driving new requirements for lightweight applications and continuously increases the share of electronic components used in cars”, says Hubert Fink, Member of the Board of the Management of Lanxess.

Lanxess sees e-mobility as a major field of application for its polyamide (PA) 6 and PA 66 compounds Durethan, polybutylene terephthalate (PBT) compounds Pocan and the fibre-reinforced composites Tepex.

The company says it already offers a wide range of products that meet the standards and norms of the electrical and electronics industry worldwide in terms of flame retardance, electrical properties and ecological behaviour.

Durethan and Pocan high-performance plastics also allow the construction of components that can replace metal parts in motor vehicles and in this way contribute to reducing weight, energy consumption and related emissions.

The materials are used, for example, in engine applications, door structures, body reinforcement, pedals, front ends and cross car beams. Depending on the part, the lightweight design contributes to a weight-saving of up to 50%.

Meanwhile in other news, South Korean stabiliser supplier Songwon Industrial Co. is investing in expanding its chemical production capacity for semiconductors, with a new technically advanced production line being built to achieve the capacities required to meet the evolving customer needs from January 2022.

As the 4th Industrial Revolution progresses, demand for semiconductors is rising rapidly and with it, customer demand for high-end specialty chemicals and raw materials for IT industries (incl. semiconductors) as well as display materials is growing significantly.

Songwon’s capacity increase investment in the main chemicals used for producing semiconductors will deliver sufficient supply to meet the strong demand in this industry. Furthermore, it adds that it can expand its high-quality offering to customers in this industry and remain ahead of the market trend.

“We’re aiming to expand our electronic material business, and in particular semiconductor related materials,” explains Dongkyung (DK) Park, Leader Business Unit Specialty Chemicals and Leader Global Research & Development. “Moving upstream with backward integration which is one of Songwon’s main strengths, we will be maximising our know-how and optimizing our technology to help us to secure the best quality from the raw materials and for the final products.”

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