Lanxess drives ahead in China

BEIJING - Lanxess AG, the world's biggest producer of synthetic rubber, said on Friday that curbs on the use of vehicles in Chinese cities will not harm its business in the country, despite a gearing down of the growth rate in the country's car sales.

Government restrictions on car purchases and use are expected to slow the growth rate of the domestic auto market by between 10 and 15 percent from the current figure of 30 percent. However, Lanxess is still confident about its business, as the demand for premium car components is still growing, said Martin Kraemer, CEO of Lanxess Greater China, in Beijing on Friday.

Sales of passenger cars in China dropped by 10.3 percent in January from a month earlier to 965,238 as cities started to limit vehicle use and purchases to relieve traffic congestion.