Lanxess opens APAC Application Development Centre in Shanghai

First project to start operation at the InnoGreen Shanghai International Chemical New Materials Innovation Centre

Lanxess held the opening ceremony for its APAC Application Development Center (AADC) at Shanghai Chemical Industry Park (SCIP)

Lanxess, a German specialty chemicals company, has opened its APAC Application Development Centre (AADC) at Shanghai Chemical Industry Park (SCIP) this June. Besides increasing the company’s local innovation capabilities, the new facility will also house the combined research activities of the Business Units Polymer Additives (PLA), Lubricant Additives (LAB), and Urethane Systems (URE).

The AADC also marks the first project put into operation at SCIP’s new InnoGreen Shanghai International Chemical New Materials Innovation Centre.

Ming Cheng Chien, president of Lanxess Asia-Pacific, commented: “The AADC will enhance our local innovation and strengthen our confidence in the Chinese market, and ultimately serve our customers in the entire Asia-Pacific region.”

The establishment of AADC also underlines Lanxess’ confidence in China’s growth potential. As one of the world’s largest chemical markets, China accounts for 40% of global chemical sales, and the figure is expected to hit 50% by 2030.

To meet the growing market demand, Lanxess has increased its presence in China and enhanced its market position in the entire Asia-Pacific region throughout continuous investment. In 2018, the company launched a new regional setup in the Asia-Pacific region, covering Greater China, Japan, South Korea and the ASEAN countries to promote synergies between countries and business units.

In September 2019, Lanxess signed an MoU with SCIP to set up an integrated site as a new base for sustainable growth in China. Two months later, the company announced its plan to establish a comprehensive application development centre to strengthen its innovation capabilities in China and the Asia-Pacific region. This came as the need for localised product grades increased due to shifting demand towards value-added products in the country.

In March last year, Lanxess announced that the AADC would be located at SCIP. The delivery of the AADC building took place last December.

Lanxess further revealed that the sales in Greater China in 2020 accounted for 14% of the company’s total global sales.  

Dr Anno Borkowsky, broad member at Lanxess, concluded: “This Application Development Centre was built to strengthen our starting position to address several strategically vital markets. And being here only one year after the groundbreaking, we have done so with significant speed. With the AADC, we are taking another vital step towards being able to benefit from the growth potential in the world’s largest chemical market.”