LANXESS India starts the production of co-generation power plant at Nagda MP



LANXESS India specialty chemicals company started up the production of a state-of-the-art co-generation power plant at its site in Nagda, Madhya Pradesh. By this LANXESS Raises Bar for Sustainable Development in Nagda.

Mumbai, October 25, 2010: Nagda – LANXESS India, the subsidiary of German specialty chemicals company LANXESS AG, has started up the production of a state-of-the-art co-generation power plant at its manufacturing site in Nagda, Madhya Pradesh today. The cogeneration plant, which is fuelled by the biomass fuel – soya husk, will meet virtually most of the power requirements of the basic chemicals plant of LANXESS at the site.

The inauguration of the cogeneration plant was marked by an opening ceremony attended by the honorable Minister of Urban Administration and Development, Madhya Pradesh, Shri Manohar Utawal, Vice President of Madhya Pradesh Mining Board, Shri Govind Maloo, Shri Rajesh Agarwal, a representative from Soyabean Processors Association and Consul General, Consulate of The Federal Republic of Germany, Mr. Leopold-Theodor Heldmann, Dr. Hans-Georg Schmitt, Head of LANXESS Basic Chemicals business unit and Dr. Joerg Strassburger, Country Representative and Managing Director of LANXESS India, were also present.

With an investment of EUR seven million in the pioneering plant, LANXESS has clearly raised the bar for in India. By utilizing a renewable source of energy, LANXESS will significantly reduce its carbon footprint by 70,000 metric tons of coal per year and thus reduce about 95,000 tons of CO2 emissions per year. In comparison, the combustion of biomass as a fuel is carbon neutral for the environment.

This plant is another example of LANXESS’ commitment to green chemistry and sustainable development. The German specialty chemicals company is using innovative and climate-friendly technologies at its manufacturing sites worldwide and has reduced its direct greenhouse gas emissions by more then 50 percent globally. From 2007 to 2009, annual emissions from the group’s plants were cut from 3.5 million to 1.5 million metric tons of CO2 equivalents.

Schmitt said, “For us, the completion of this co-generation plant will be just the beginning of a major effort to make this Nagda site more sustainable. Besides reducing our carbon footprint, major emphasis is put on recycling process water. In addition, our waste treatment facilities will be enhanced with the goal of ultimately phasing out waste water discharge. A state-of-the-art liquid waste incinerator will be built and new ways to upgrade the safety and security of our transportation network will be sought. For LANXESS, these are fundamental prerequisites to further expand existing capacities and extend our product portfolio at the Nagda site. “

Strassburger added, “We have raised the bar in terms of responsible manufacturing here in India. We have also set up and started a cogeneration plant in Jhagadia in the state of Gujarat which would be based on a clean fuel, natural gas. Since green chemistry is a part of the LANXESS DNA, we have taken initiatives to make our neighborhood greener by planting trees at our sites in Jhagadia and Nagda.”

LANXESS is a leading specialty chemicals company with sales of EUR 5.06 billion in 2009 and currently around 14,400 employees in 23 countries. The company is represented at 42 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.

Forward-Looking Statements

This news release contains forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.