Overview of Wuxi Site

Established in 1995, LANXESS Wuxi Chemicals Co., Ltd., is LANXESS’s primary production site for the manufacture of leather chemicals and engineering plastics for the Chinese market. The Wuxi site, located 120 kilometers north-west of Shanghai, is a  technology base, serving as home to LANXESS’s largest research and development center for leather products in Asia-Pacific, the company’s Research and Development Testing Center (RDTC) for engineering plastics, and the microbiology test lab of the Material Protection Products business unit.

Environmental protection and HSEQ management in the production of leather chemicals and engineering plastics

Honored as the first “National Environmentally Friendly Enterprise” in China by the State Environmental Protection Administration in 2004, the Wuxi site is committed to environmentally friendly production. The emphasis placed on comprehensive HSEQ management ensures occupational safety and environmental soundness in daily operations. The China Post Administration issued a commemorative stamp marking the occasion. On June 29, 2007, Premier Wen Jiabao visited the Wuxi site and praised LANXESS’s efforts to fulfill the highest standards of environmental protection and corporate social responsibility.

All LANXESS’s production in China is conducted under the same rigid environmental and occupational safety standards adopted by LANXESS operations worldwide. The LANXESS site in Wuxi is a model plant in both China and beyond. In 2001 and 2002, it was accredited with ISO 9001 and ISO 14001 certification.

The LANXESS “HSEQ Policy” is an important enterprise guideline adhered to by all LANXESS staff in China. The onsite HSEQ Manager is responsible for monitoring the implementation and development of these standards and communicating with related government bodies to stay up to date with the latest policies and information.

The production process for leather chemicals in the Wuxi plant is classified as hazardous due to the use of explosive raw materials. To ensure employee safety in emergency situations, the company has signed special agreements with two local hospitals to provide medical service to LANXESS employees without advance compensation. The company also regularly updates the medical staff in charge in contracted hospitals with information on the hazardous raw materials in use and the latest medical treatments in case of accidental situation.

The company has imported top-quality occupational safety equipment, including goggles, helmets and gas masks to provide comprehensive protection for LANXESS employees. In addition, the uniforms for onsite employees are specially developed to be static free and resistant to chemicals, and can easily be stripped off in an emergency.

Conserving natural resources and cutting down emissions at the Wuxi Site

As a leading player in the global chemical sector, the continuous improvement of our environmental performance is a key corporate goal. The Wuxi site strives to maximize the conservation of natural resources – through the most efficient possible use of raw materials and energy –and to discover new potential methods for emission and waste reduction.

LANXESS considered environmental protection and resource conservation from the earliest stages of plant design and construction. The production flow was scientifically arranged in the multi-storey leather chemical production plant – raw materials feeding on the top floor, production in the middle, and final product filling on the ground floor. The vertical arrangement not only means increased efficiency in the transfer of product but also effectively prevents raw materials settling in the pipelines.

Conservation equipment is employed in the cleaning of chemical reaction pots used for the production of leather chemicals, resulting in a significant reduction of waste water. Statistics shows that water consumption per ton of product decreased from 23.4 tons in 1998 to 4.3 tons currently, while power consumption decreased by 69%, and waste water per ton of product by 55%.

Thanks to improved production processes, the waste water left over from the production of leather chemicals can be collected and used as raw material in the production of similar chemical products. The collected water is stored in different pots and labeled accordingly for employees to use in daily production with the help of an effective management system. This approach helps to reduce the wastewater discharge to zero.

Engineering plastics plant of Semi-Crystalline Products business unit

Following the launch of a state-of-the-art compounding plant for the production Durethan and Pocan in Wuxi in 2006, LANXESS set up additional production lines in 2007 to double the annual production capacities for these products to around 40,000 tons.

The key customers for these products, used in the manufacture of high-specification parts, are from the automotive and electronics industries. Other major markets include the manufacturers of domestic appliances and leisure goods.

R&D centers of business units in Wuxi

The Research and Development Testing Center (RDTC) of Semi-Crystalline Product business unit

The Research and Development Testing Center (RDTC) of Semi-Crystalline Products business unit was opened in mid-May, 2007, with an investment of USD 3.2 million to speed up the development of new polyamide and polyester grades through extensive material testing. The center is a first step in establishing an effective research network in China and benefits LANXESS’s Asia and international customers.

The RDTC is equipped with an injection molding machine with a clamping force of 200 tons and around 20 devices for testing materials. The tests are performed in-house by specially trained personnel according to ISO and ASTM standards. The necessary test pieces – such as bars and plates – are also manufactured in the RDTC. The Center’s extensive program ranges from mechanical tests, such as tensile, flexural, drop and impact tests, through rheological tests – to determine the melt index (MFI) and shear viscosity – to physical tests. The physical tests include measurements to establish the heat distortion temperature (HDT), Vicat temperature and density, analyses to assess the dynamic-mechanical and thermo-mechanical properties (DMA and TMA), and tests to determine the moisture content and color values. There are also machines for the heat, moisture and media storage of test specimens to determine the durability of materials.

The RDTC works closely with the product development department at the Dormagen site in Germany, and they are connected online via a laboratory information management system. This enables the direct and rapid exchange of test jobs and results.

The Research and Development Center of Leather Business Unit

Constructed in 2004, LANXESS runs the largest research and development center for leather products in Asia-Pacific and offers customers in the region technical services and arranges training and continuing education events.

Alongside innovative leather chemicals and applications, the R&D center also provides technical know-how, development experience and knowledge of market and fashion trends to customers in the leather processing industry.

The microbiology test lab of Material Protection Products business unit

Opened in 2008, the new microbiology test lab in Wuxi is aiming to help customers select the right biocidal products and advise them on any related technical issues and problems. The launch of this lab is an important step to position LANXESS as a leading supplier in China and enables the company to offer customers innovative technical solutions both flexibly and locally.

Facts and figures

Name: LANXESS Wuxi Chemicals Co. Ltd.
Size: 66,764 square meters
Start of Operation: May 1997
General Manager: Dr. Dongqi Hu
Employees: 300

Activities

Leather business unit:
• Production of leather chemicals
• Distribution of leather chemicals for the entire Asia Pacific region
• Research and development in the field of leather Chemicals

Semi-Crystalline Products business unit:
• Production of high-performance plastics
• R&D testing center

Milestones

Shanghai, April 17, 2008