Lanxess has opened its first Russian factory. Subsidiary Rhein Chemie's Lipetsk facility makes polymer bound rubber additives for Russia and the Commonwealth of Independent States (CIS), primarily for the automotive and tyre industries.

Equipment for the bladders used in tyre production will be added in 2016. The overall spend is a 'seven-digit euro figure' and 40 new jobs will be created in the medium term, Lanxess said in a statement.

"This production site underlines our focus on the global growth markets. That applies both to the group as a whole and to Rhein Chemie, which now has its own plants in all the BRIC markets," said board member Rainier van Roessel.

Rhein Chemie opened a plant making high performance bladders in Brazil last May.

"Opening our first production facility in Russia marks yet another milestone in our long term commitment to this market. Since entering the market in 2009, we have quadrupled our sales in Russia and established strategic partnerships in our target industries and with research institutes. The new facility will enable us to harness market potential more effectively, particularly in the automotive and tyre industries," added board member Werner Breuers.

Lanxess research shows that, in the medium term, annual percentage growth rates for the Russian automotive and tyre industries are expected to be in the mid to high single digit range.

Rhein Chemie will produce up to 1,500 metric tons of predispersed, polymer bound Rhenogran rubber additives a year at the Lipetsk plant.

A facility capable of producing up to 80,000 Rhenoshape bladders annually is to be added to the complex in 2016. Bladders are used in the tyre industry to give tyres their final form and properties.

"We are seeing a rise in demand from the Russian automotive and tyre industries for quality products and, thanks to our new plant and high quality, innovative product portfolio, we can now cater to their needs directly from Russia," the supplier said.