April 2, 2021, German specialty chemicals company Sheng held an annual press conference in Shanghai to introduce its Greater China financial performance in 2020 and business layout in 2021. In 2020, the LANXESS Group’s sales will be 6.104 billion euros, and the EBITDA in the normal business scope will reach 862 million euros, which is at the upper end of the expected range. For fiscal year 2021, LANXESS is full of confidence and expects a recovery in many customer industries. The company expects its pre-order EBITDA to be in the range of 900 million euros to 1 billion euros.
Qian Mingcheng, President of Lanxess Asia Pacific, said: “China is an important market for Lanxess’ steady development, and it is also the only market with strong demand in the Asia-Pacific region during the epidemic. The sales of Lanxess Greater China in 2020 accounted for 14% of the total global sales. %, maintaining the high level of the previous year. Significantly increased demand from the automotive industry and the newly formed Consumer Protection business segment contributed significantly to our performance development.”
At the press conference, LANXESS also announced that it will cooperate with Guangzhou Tinci Advanced Materials Co., Ltd. (hereinafter referred to as “Tinci Materials”), the world’s leading manufacturer of lithium-ion battery materials, to enter the field of battery chemicals. Starting next year, LANXESS will produce electrolytes for lithium-ion batteries under license from Tianci Materials.
Qian Mingcheng pointed out: “The upward momentum of electric vehicles is accelerating. Many battery production plants are currently being built in Europe. This fast-growing market also offers great opportunities for LANXESS, especially in the field of battery chemicals. We Already producing many of the raw materials needed to make batteries, this partnership with Tianci Materials will give us a further foothold in this market.”
The role of the electrolyte is to transport lithium ions in the battery, so it is a key material for lithium-ion batteries. Through the production of high-performance electrolyte by LANXESS in Leverkusen, Tinci Materials will become a local supplier for European battery manufacturers.
LANXESS will produce at a high-tech factory operated by its subsidiary Saltigo, a world-leading custom manufacturer. The plant formulates electrolytes according to the highest quality requirements. Saltigo will bring its extensive chemical expertise to the collaboration, while further enriching its experience in the field of electrolyte production.
At the press conference, Qian Mingcheng also introduced the latest progress of LANXESS Asia Pacific Application Development Center (AADC). “The project has been handed over to us by the Shanghai Chemical Industry Park (SCIP) in mid-December 2020 and is expected to be put into operation in mid-2021. Local innovation is becoming more and more important to the development of LANXESS’ new business in China,” said Asia-Pacific Application Development Center (AADC) will face the market and tap into the growing demand for high-quality products,” Qian Mingcheng said.
While expanding the market, LANXESS always regards sustainable development as an important strategy of the enterprise. In November 2019, LANXESS proposed the goal of reducing greenhouse gas emissions from about 3.2 million tons to zero by 2040 and achieving climate neutrality. At present, this plan is progressing smoothly. Compared with 2019, LANXESS has reduced its greenhouse gas emissions by 14% in 2020, which is equivalent to reducing 417,000 tons of carbon dioxide.
