German specialty chemicals giant Lanxess announces a major production expansion at its Rhein Chemie site in Qingdao. [Photo provided to chinadaily.com.cn]

German specialty chemicals giant Lanxess has announced a major production expansion at its Rhein Chemie site in Qingdao, boosting processing additives and pre-dispersed polymer pellet capacities by 50 percent alongside technological upgrades. This marks Rhein Chemie's largest global investment in five years.

"Qingdao serves as a crucial strategic hub for Lanxess in Asia-Pacific," said Michael Rockel, CEO of LANXESS Greater China. "Our three decades of continuous investment here are built on trust and mutual success — supported by the city's strong industrial foundation, business-friendly environment, and longstanding German-Chinese cooperation."

The expansion emphasizes sustainable production, using more bio-based materials and optimizing logistics to reduce packaging waste. [Photo provided to chinadaily.com.cn]

Amid a global chemical industry downturn, Lanxess sees China as a key growth driver. Rhein Chemie, which operates 14 production sites across eight countries, specializes in rubber additives and tire performance products.

Since its establishment in Qingdao's Licang district in 1995, the plant has undergone multiple expansions, now producing over 100 chemical products for the Asia-Pacific market. Post-expansion, total capacity will reach 30,000 metric tons annually.

Rhein Chemie (Qingdao) in Qingdao's Licang district now produces over 100 chemical products for the Asia-Pacific market. Post-expansion, total capacity will reach 30,000 tons annually. [Photo/Guanhai News]

Rising demand from China's automotive sector — especially new energy vehicles (NEVs) — has driven the expansion. NEVs place higher performance demands on tires, requiring advanced rubber additives. "This growth pushes us to enhance both supply capacity and product quality," said Zhang Lei, general manager of Rhein Chemie (Qingdao).

Lanxess is also shifting toward higher-value solutions. "Growing and diversifying demand in China inspires our innovation," Rock noted. The expansion emphasizes sustainable production, using more bio-based materials and optimizing logistics to reduce packaging waste.