QINGDAO, Nov. 11 (Xinhua) — German specialty chemicals company LANXESS on Tuesday celebrated the capacity expansion of its Qingdao production base, a move to meet rising demand for rubber additives in China.
The upgrade increases its capacity for two production lines by 50 percent each, according to Michael Rockel, CEO of LANXESS Greater China. The site’s total annual output will rise from 25,000 tonnes to 30,000 tonnes.
Rockel said that the expansion enhances asset flexibility and incorporates top-tier automation and energy-efficient technologies. “This is very important for our sustainability goals — not just to promote the products to the market, but to promote the sustainable products.”
The expansion aligns with the LANXESS “local production for local markets” strategy, driven by robust market demand, he added.
Since its spin-off from Bayer AG in 2005, LANXESS has spent two decades building a strategic landscape in China, now operating nine subsidiaries, seven R&D centers and multiple production sites.
The company has consistently invested in the Chinese market. For instance, originally established in 1995, the Qingdao base in east China’s Shandong Province has undergone several expansions, adding production lines for lubricant additives and other chemicals.
“I see a very positive trend shifting from pure volume growth to qualitative development. As the market evolves, our customers demand more sustainable and environmentally friendly solutions, and we are committed to bringing these solutions,” he said, expressing strong confidence in the Chinese market and its potential.
According to Rockel, by collaborating with local suppliers and adapting its product portfolio, LANXESS has reduced its production costs and enhanced its competitiveness. The flexibility and efficiency of the Chinese supply chain provide solid support for its global operations.
LANXESS is among many German companies that are deepening their commitment to China.
German industrial automation firm Festo Group is developing a 2030 strategy to further integrate German and Chinese strengths, applying AI and automation across more industries.
German consumer goods company Beiersdorf has invested over 31 million U.S. dollars in its Shanghai subsidiary to boost product localization and market expansion.
Even amid global headwinds and rising protectionism, China’s doors to the world remain wide open, and continue to open even wider. By the end of June 2025, China had utilized 708.73 billion U.S. dollars of foreign investment during its 14th Five-Year Plan period (2021-2025), and established 22 pilot free trade zones across the country.
According to the 2024/2025 Business Confidence Survey from the German Chamber of Commerce in China, 92 percent of member companies plan to stay in China, and about half intend to increase their investment over the next two years.
