GUANGZHOU: Germany-based Lanxess AG, a spin-off of Bayer AG and a leading supplier of chemicals, rubber and plastics, is ramping up investment in China, which it views as a major pillar of its "going Asia" initiative.

"Headquarters has listed the cities of Nanjing and Ningbo in East China as possible locations for a massive project for producing ion exchange resins, the investment of which will reach tens of millions of euros," said Wang Yongli, president of Lanxess Group Greater China.

The facility will be one of Lanxess' ion exchange resins business' biggest investments, Wang said.

He said the two cities are top candidates because of their well-developed infrastructure, improving investment climate and promising market development prospect.

But Wang would not comment on the cities' chances of beating out other Asian centers.

He said that the company has invested heavily in production capacity and research and development in order to tap market potential.

The company's other operations in China include: an inorganic pigments project in Shanghai; a semi-crystalline products and leather chemical project and related R&D testing center in Wuxi; and a hydrazine hydrate project in Weifang.

Wang said Lanxess is installing a new semi-crystalline product and leather chemical production line and a small exclusive production line for specialties and customer samples in Wuxi in East China's Jiangsu Province.

His firm is also working on a rubber additive project and a technical rubber products R&D center in Qingdao in East China's Shandong Province, and a rubber antioxidant project in Tongling in East China's Anhui Province.

"We see unparalleled potential in China," he said.

For examples, Wang said the annual double-digit growth of the automotive industry and the yearly 8 percent growth of the electronic and electrical industries present a huge market for its semi-crystalline products.

The company will also target the soaring construction, beverage and toy industries, Wang said.

He added that Lanxess will expand staffing in China to meet rapid business growth.