(Xinhua)
Updated: 2008-03-15 11:23

Lanxess AG, the German chemical maker spun off from Bayer AG, on Friday reported a 23.4 percent rise in China sales last year, nearly twice the pace of 2006, as it continued to expand production in the fast growing market.

Related readings:  Lanxess AG eyes Chinese market  China becomes Lanxess's biggest market in Asia in 2006  Germany's Lanxess opens new chemical plant in China  Lanxess to start up 3 chemical plants this year

Its China sales reached a record 403.9 million euros last year, from 327.3 million euros in 2006 when sales grew 12 percent, according to company data.

The 2007 figure made the country Lanxess's largest Asian market for the third consecutive year since it overtook Japan in 2005.

"China is currently Lanxess's third largest market in the world, after Germany and the United States," said Wang Yongli, Lanxess Group Greater China president.

The sales growth came after a series of moves to expand production in China, including launching a second engineering plastic plant in the eastern Jiangsu Province and a rubber antioxidant plant in neighboring Anhui.

A synthetic rubber research center, one of the largest of its kind, was expected to begin operation in Qingdao, Shandong Province, Wang said.

The Leverkusen-based chemical maker planned investments of between 330 million euros and 350 million euros this year to renew or expand facilities to seek higher global sales, particularly in Asia, the company said in a statement.

Wang declined to say how much would be invested in China.

Lanxess's global sales dipped 4.8 percent year-on-year to 6.61 billion euros last year. After adjusting for currency and portfolio effects, sales grew five percent. Net profits declined 43.1 percent to 112 million euros.