• New plant for black iron oxide pigments to have annual capacity of 10,000 metric tons
• Initiatives at yellow iron oxide pigment plant to increase efficiency and cut emissions by at least 15 percent

Singapore, 13 November 2009 – German specialty chemicals company LANXESS has broken ground on a new manufacturing plant for black iron oxide pigments in Jinshan, Shanghai. This plant, belonging to the Inorganic Pigments (IPG) business unit, is scheduled to go on stream in the fourth quarter of 2010, and will have an annual capacity of 10,000 tons.

At the Jinshan site, the IPG business unit already operates a yellow iron oxide pigment plant which has an annual capacity of about 30,000 tons. Both plants safeguard the raw material supply for the mixing and milling unit for pigments blending in Taopu, Shanghai. The iron oxide pigment plants and blending facility serve customers in China and other countries in the Asia Pacific region.

LANXESS also announced the launch of a technical improvement project at the yellow iron oxide pigment plant. The project aims to increase efficiency and enable more environmentally friendly production. Scheduled for completion in 2011, the project will reduce the plant’s emissions by at least 15 percent.

Dr. Wolfgang Oehlert, Head of IPG business unit for Asia Pacific, says, “Equipped with state-of-the-art technology, our production base in Shanghai will foster the growth of our business in the Asian markets for iron oxide pigments.”

Important market segments for pigments include the construction industry, the paints and coating sector and the plastics and paper industries.

The LANXESS Inorganic Pigments business unit is one of the world’s leading iron oxide pigment manufacturers. Its iron oxide and chrome oxide pigment facilities are located in Europe, Brazil, Asia, the United States and Australia, and have total annual capacity of about 350,000 tons.

LANXESS is a leading specialty chemicals company with sales of EUR 6.58 billion in
2008 and currently 14,335 employees in 23 countries. The company is represented at 46 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
    
Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

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