Core Insights - LANXESS's subsidiary Rhein Chemie has officially launched an expansion project at its Qingdao production base, marking the largest investment in five years for the company [3] - The expansion involves two production lines, V4 and V8, with a 50% increase in capacity and technological upgrades [3] Company Overview - LANXESS is a global specialty chemicals supplier with approximately 12,000 employees across 32 countries, and projected sales of €6.366 billion in 2024 [3] - Rhein Chemie operates in the additives segment and has 14 production sites in 8 countries [3] Production Details - The V4 line produces processing additives, while the V8 line focuses on pre-dispersed masterbatch products [3] - The Qingdao production base has been operational since 1999, with a total capacity of 30,000 tons [3] Market Demand - The expansion is driven by strong downstream market demand, particularly in the tire industry, which is critical for the production of specialty additives [5] - China is the world's largest tire manufacturer, with a projected production of 1.187 billion rubber tires in 2024, a 9.2% increase year-on-year [4] Economic Context - Despite the expansion, the global economy is facing challenges, with the petrochemical industry's profit margins declining from 8.03% in 2021 to 4.85% in 2024 [6] - LANXESS's specialty additives business reported a decline in sales and profits in Q3 2025, prompting a strategic shift towards providing greater value through innovation rather than focusing solely on sales volume [6]