LANXESS Optimistic About Tyre Market in India

LANXESS, a specialty chemicals firm, foresees increase in demand for synthetic rubber in India, a country with a long history in the production and consumption of natural rubber. Driven by the need of rapid modernization, India is currently undergoing a shift towards replacing natural with synthetic rubber in a variety of applications. As one of the world's leaders in manufacturing synthetic rubber and backed by a history of serving the Indian market for over 40 years, LANXESS is set to play an important role in this development.

One of the growth drivers for high performance rubber in India is the automotive industry. Triggered by a burgeoning middle class, demand for passenger cars and two-wheelers is rising. The automotive industry is expected to grow by about 12-14% in 2010-2012. In addition, the government has an ambitious project of expanding and strengthening the highway infrastructure of India by an estimated growth rate of 8-9%.

Increase in mobility would generate more demand for tyres. Modern radial tyres rely on high-performance synthetic rubber to achieve their superior qualities. LANXESS manufactures a wide range of rubber chemicals, high-performance rubber and technical rubber products to cater to these demands.

To be able to serve the Indian customers locally, LANXESS, the only western company manufacturing rubber chemicals in India, operates plants in Jhagadia in the state of Gujarat and, through its subsidiary Rhein Chemie, in Madurai, Tamil Nadu (polymer bound rubber chemicals are produced). In addition, LANXESS is constructing a state-of-the-art butyl rubber plant in Jurong Island, Singapore, which is scheduled to start operations in Q1 2013. The plant is designed for a capacity of 100,000 metric tons per year.

LANXESS markets a wide range of high-performance synthetic rubbers to cater to the Indian rubber industry needs, both tyre and non-tyre.

Vulkacit® (powder rubber accelerators), Vulkanox (anti-oxidants), and other rubber chemicals from LANXESS and Rhenogran® (polymer bound rubber chemicals) from Rhein Chemie are used in tyres, tyre tubes and flaps, rubber belts, rubber fuel tubes and automotive window profiles among others.

Butyl rubber is a synthetic rubber characterized by high impermeability to air. Halobutyl rubber, a specialty rubber polymer, is used in the manufacture of innerliners - the innermost layer of radial tyres for car, truck, bus and aircraft tyres.

Buna® synthetic rubbers from LANXESS see very healthy demand from the tyre industry due to their ability to take dynamic loads and resistance to heat and abrasion and are used widely by the Indian tyre industry.

Baypren®, Perbunan®, Therban® and other technical rubber products from LANXESS are used for non-tyre applications in the automotive industry like window profiles, seals, belts, hoses and various other moulded products.

With these investments in the Indian and Asian markets and the array of rubber and related products that the company offers, LANXESS is geared to participate in India's growth. As the pioneer in synthetic rubber, rubber chemicals, LANXESS is rightly equipped to cater to the demand for synthetic rubber and rubber chemicals, products and applications for the growing tyre and non-tyre industry in India.

About LANXESS

LANXESS is one of the leading specialty chemicals companies with sales of EUR 5.06 billion in 2009 and currently around 14,400 employees in 23 countries. The company is represented at 42 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.