Lanxess plans to grow further in the U.S.; organically through investment to expand and strengthen its assets, as well as through acquisitions, Anno Borkowsky, head of Lanxess additives business unit, said in an interview.

Lanxess Additives business unit includes three lines of products: lubricant additives, additives for plastics and bromine-related flame retardants. The company does not break down sales revenues for each.

With the acquisition of Philadelphia-headquartered Chemtura, Lanxess said it strengthened its position in the markets for lubricant additives and synthetic lubricants for industrial applications. The company has also significantly expanded its market position for flame retardant additives after integrating the Chemtura brominated flame retardant additives, bromine and bromine derivatives business.

Lanxess anticipates that the industrial lubricant additive and flame retardant additive markets will grow 3 to 4 percent annually in the medium term.

Following the closing of the Chemtura acquisition, Lanxess expanded further into North America through the purchase of Belgian chemicals group Solvay, which owned a Charleston, South Carolina production site. This site produces flame-retardant additives, boosting what the company already gained through Chemtura. With this acquisition, we gained a North American platform for phosphorus-based specialty chemicals – a key component of our additives business – and are able to further drive growth in this key region, said Anno Borkowsky, head of Lanxess additives business unit.

The German company believes North America, particularly the United States, has good growth prospects for its strongest markets, including automotive, chemicals, and construction.

In recent years the company has expanded significantly in North America, and now has 24 production sites, 19 of which are in the U.S. “The lubricant additives business is also present in the U.S. with the research campus in Naugatuck and the global headquarters of the lubricant additives business line is currently in Middlebury, Connecticut, relocating to Shelton, Connecticut by September 2018,” noted Borkowsky.

Lanxess plans to continue its reach into the North American market by investing around $500 million in its U.S. sites by 2022. Of that investment $50 million will be primarily allocated to the expansion of the bromine brine exploration nextwork at the production complex in El Dorado, Arkansas.

“The remaining amount will be allocated among our other U.S. sites, which will be announced as specific projects are identified. Of LANXESS’ 19 U.S. production sites, 2 are producing lubricant additives products, Fords, New Jersey and East Hanover, New Jersey,” Borkowsky told Lube Report.

The acquisition of Chemtura in 2017 strengthened primarily our additives business in the U.S. both in sales and asset base, Borkowsky continued.