German speciality chemicals company Lanxess is expanding its global production network for inorganic pigments in China by investing EUR55 million to build an iron oxide red pigment facility at the Ningbo Chemical Park on the Chinese East Coast.

The plant will initially have an annual capacity of 25,000 tonnes and will will create 150 new jobs. Construction will begin in the second quarter 2013. The production start-up is scheduled for the first quarter of 2015.

Lanxess says it will manufacture high quality iron oxide red pigments at the new plant using an improved and highly sustainable Penniman process, especially in terms of water treatment, waste gas cleaning and energy consumption. The company will market its yellow shaded red pigments globally under the brand Bayferrox. Key customers are manufacturers of paints and coatings. Furthermore, the construction and plastics industries will be supplied.

Lanxess already operates one of China’s largest and most modern plants for iron oxide pigments in Jinshan, Shanghai, with an annual capacity of 38,000 tonnes of iron oxide yellow and black pigments.

With an annual capacity of more than 350,000 tonnes, Lanxess’s Inorganic Pigments (IPG) business unit is one of the world's leading manufacturers of inorganic iron oxide and chromium oxide pigments. The heart of global production is located in Krefeld-Uerdingen, Germany. The business unit has close to 1,300 employees and is part of the Performance Chemicals segment.