Lanxess have begun plans to increase its production of thionyl chloride by 20 per cent at its plant in Nagda, India.
The company says the new move is in response to a boom in demand for the intermediate, which is used in manufacturing agrochemicals, dyestuffs, fine chemicals and pharmaceuticals.
And according to Daniel Smith, head of financial and business media relations, the decision to expand production in its Indian, rather than its German, facility is part of Lanxess’ strategy to invest in the BRIC markets (Brazil, Russia, India and China).
He told in-PharmaTechnologist.com: “India is a core part of our growth strategy at the moment.
“We’re investing in the BRIC markets heavily, because it is a budding market.”
However the company has remained tight-lipped over how they plan to increase productivity, as well as which companies they are working with.
All Smith would tell Outsourcing-Pharma was: “I don’t think there are plans to add to the workforce.”
Hubert Fink, head of Lanxess’ business unit Advanced Industrial Intermediates said: “Lanxess is supplying thionyl chloride to all major customers in the industries in India.
“Indian demand has grown significantly by eight percent in the recent years and we are expecting a continuation of consistent growth in the demand for thionyl chloride.”
Onwards and upwards
The latest news comes less than a month after the announcement that the plant in Krefeld, Germany, would be expanded to meet a rising demand for menthol.
Once completed - expected to be in 2012 - the plant will support long-term ingredient supply deals.