Lanxess is proceeding with plans of plant expansions and making inroads into innovative markets such as "green" tires, shrugging off talk of a double-dip recession, as per Platts. Lanxess is Germany-based manufacturer of synthetic performance rubbers with exposure to the automotive industry, which is highly sensitive to economic cycles. Automotive represents 15% of group sales, while exposure to the tire industry is 25%- both sectors are booming.
As per figures released at the beginning of May by research firm JD Power, global sales of light vehicles is expected to grow to 125 mln units by 2020, led mainly by strong growth in emerging markets, from a forecast 77 mln units this year. This estimated boom has triggered announcement of series of expansions at Lanxess’ various plants across the world.