International. Lanxess announced that it is expanding the capacity of its global production network to safeguard customers' long-term offerings. At Krefeld-Uerdingen, home to the world's largest synthetic iron oxide pigment plant, the production capacity of red and black pigments will gradually increase by around 23,000 tonnes, from the current 280,000 metric tonnes in 2019.
In addition, Lanxess is also expanding its capacity for yellow pigments by 2,000 metric tons per year at its headquarters in Porto Feliz, Brazil. The company already expanded its global production network recently starting the operation of its headquarters in Ningbo, China. The synthesis production facility there, which began operating in the first quarter of 2016, is designed for an annual capacity of 25,000 metric tons of red pigment. Through these measures, Lanxess will increase its global production capacity from 375,000 to 400,000 metric tons of iron oxide pigments by 2019.
"The purpose of these investments is to support the growth of our customers," says Jörg Hellwig, head of the Inorganic Pigments (IPG) business unit. LANXESS continuously evaluates the development of the global pigment market. The company expects global demand for iron oxide pigments to grow an average of three percent per year after 2018. Demand for iron oxide pigments will increase significantly due to strong growth in countries such as India and the continued recovery of the construction industry in North America and Parts of Europe. China will also contribute to this development with growth rates that remain at a high level."
Paints and coatings are the second field of application of synthetic iron oxide pigments, accounting for a quarter of total global consumption, and the trend is on the rise. "By 2025, we expect annual global growth in iron oxide demand to average 4 percent. We believe in particular that the demand for high-quality pigments with uniform global standards will increase," Hellwig added.
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