In a bid to service India's growing automotive industry, specialty chemical supplier Lanxess AG is expanding its compounding plant in Jhagadia, Gujarat state.
The expansion represents a EUR 70 million investment, Lanxess said in a statement, and creates roughly 300 new jobs.
The company's Semi-Crystalline Products business unit started production at the site's new plant for high-tech plastics used by the automotive industry, including leading car manufacturers Tata Motors, Volkswagen and Ford.
The Indian economy is expected to grow by eight per cent this year, driven by strong demand for premium products for the automotive, tire and construction industries. "Global automakers, as well as their suppliers, are already active in India and are investing in new plants on the subcontinent," Lanxess siad. "The growing middle-class in India is driving the trend towards greater mobility, and the country's automotive industry is expected to grow by 9.5 per cent this year."
Jhagadia is Lanxess' second largest production site in India after its site in Nagda in Madhya Pradesh state.
In addition to the Jhagadia site expansion, Leverkusen, Germany-based Lanxess also opened its new head offices in Thane, Maharashtra state.