——Interview with Liu Weiqiang, Vice President of the Asia Pacific Region of Lanxess Polyurethane Systems Business Unit (URE)
2017 is a year of historic significance for Lanxess. At the end of April 2017, LANXESS has successfully completed the acquisition of American Chemtura Corporation, one of the world’s leading suppliers of flame retardants and lubricant additives. This acquisition is the largest acquisition transaction in LANXESS history; in March LANXESS plans to Expand investment in chemical intermediates; in November of the same year, LANXESS announced an investment of 20 million euros to build a new production plant for high-performance plastics in Changzhou; every strategic layout reflects LANXESS’ confidence in future development. As the world’s leading supplier of special chemicals, LANXESS has always remained true to its original aspiration, insisted on innovation and sustainable development, and aimed at the transformation and upgrading of the chemical industry to promote the development of the industry.
According to the data analysis of Tiantian Chemical Network, driven by the continuous innovation of manufacturers and downstream users, the global polyurethane demand has maintained a rapid growth; in 2010, the global polyurethane consumption was about 13.65 million tons , rising to 17.42 million tons by 2016, with a compound growth rate of 4.15% from 2010 to 2016. It is estimated that in the next few years, the world’s polyurethane consumption will maintain a growth rate of more than 5%. On the one hand, the rapid growth is due to the ability to replace wood, metal, rubber and other materials, and on the other hand, the market consumption in developing countries continues to increase. In addition, China is the largest producer of polyurethane in the world, accounting for about 45% of global polyurethane production.
After Lanxess acquired Chemtura and its polyurethane business, Mr. Liu Weiqiang, President of the Asia Pacific Region of Lanxess Polyurethane Systems Business Unit, recently accepted an interview with a reporter from Tiantian Chemical Network. In-depth exchanges were conducted on topics such as performance, technological innovation, and future business planning.
Q1: Lanxess officially acquired Chemtura on April 21, 2017, including the polyurethane business. What is the impact?
A: This acquisition is an important milestone in the sustainable development of LANXESS Group. Thanks to the new organizational structure and a more balanced product portfolio, LANXESS will significantly increase its stability and profitability.
Through this acquisition, LANXESS has expanded its influence in North America. At present, LANXESS’s production base in this region has increased from 12 to 24; the total number of employees has increased from 1,500 to about 2,800; From about 17% before to about 21% now.
In addition to North America, by integrating Chemtura’s factories in Asia and China, LANXESS’ additive product portfolio will further expand our business in China and the Asian market.
The Nantong plant’s line of polyurethane products includes hot cast prepolymers, which are building blocks of specialty polyurethanes primarily used in the construction, mining, petroleum, steel, sports equipment and electronics industries. The Nantong plant also produces industrial lubricants.
Q2: After acquiring Chemtura, polyurethane is a brand-new business field for LANXESS. What challenges will it face in future development? How will Lanxess respond?
Answer: In fact, polyurethane is a field that Lanxess has been actively paying attention to and planning to enter. This acquisition is also a beginning for Lanxess to formally develop the polyurethane market .
New businesses, new markets, new employees, and new technologies are all challenges that LANXESS needs to face. Since the acquisition, LANXESS has focused on the rapid and smooth integration of new businesses and new employees, and is also committed to providing better products and services for new and old customers.
In the future, LANXESS will continue to adhere to the orientation of customer and market needs, and continue to innovate and improve on the basis of original business and technology, so as to meet the needs of emerging markets and customers with better products and services. And continue to increase the market share in polyurethane.
Q3: After Lanxess acquired Chemtura, it carried out business restructuring. Can you briefly introduce the current progress of the polyurethane business and its performance?
Answer: In April 2017, LANXESS completed the acquisition of American Chemtura Corporation. Chemtura’s business mainly includes: additives, polyurethanes and organometallic compounds.
In terms of specific business integration, Chemtura Polyurethane Department was merged into Lanxess Polyurethane System Business Unit, Polyurethane System Business Unit and High Performance Materials.The lower the value, the greater the compatibility of the product. To protect the environment and the health of workers, isocyanates are a big focus of regulatory discussions.
Due to our low free products, LANXESS is now in a good position, also with regard to pending regulations. All in all innovation is an important cornerstone of our business strategy, especially since most products are tailored specifically to the needs of individual customers. Through our modern R&D center in Naugatuck, USA, and technical service centers in Latina, Italy, Nanjing, China, Naugatuck, USA, and Rio Claro, Brazil, we have access to great technology and innovation.
Q7: At present, the Chinese government is vigorously advocating Internet+, and vertical commodity trading platforms emerge in endlessly, among which chemicals and steel are the main representatives. What does LANXESS think about the emergence of this business model? Will LANXESS Polyurethane actively participate in it in the future?
Answer: The vertical commodity trading platform based on Internet + is a new thing in the industry in recent years, and LANXESS is actively paying attention to it. For Lanxess, it has always been adhering to the concept of embracing innovation. In the future, Lanxess will continue to determine its own operating strategy according to the needs of the market and customers.
LANXESS is already a leading supplier of polyurethane systems and we want to enhance this position, especially in Europe and Asia. In addition, we want to improve technology transfer between regions, building future growth on a strong market position and a top-notch team.
Due to the increasing automation of production processes, the special application market is growing worldwide and the requirements for materials are becoming higher and higher. Also, materials such as metals and standard plastics are being replaced and we are benefiting from this market trend. Last but not least, we will continue to expand our expertise into new application areas by taking advantage of the customer relationships and platforms that LANXESS provides us with.
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Resume of Liu Weiqiang
Mr. Liu Weiqiang received a bachelor’s degree from the Department of Electronics of Sun Yat-sen University in 1994, and a master’s degree in business administration from the University of Illinois in 2002.
Liu Weiqiang has worked in Johnson & Johnson, DuPont, Danaher and other companies, and has shown excellent management and leadership skills.
Later, Liu Weiqiang served as the head of the Asian marketing and strategy department at Eastman Chemical. Realize the success formula for business in Asia.
Liu Weiqiang joined Chemtura in November 2012 to drive the development of its petroleum additives and polyurethane divisions. With Chemtura successfully merged into LANXESS in April 2017, he joined LANXESS Polyurethane Business Unit and became a member of LANXESS.
Mr. Liu Weiqiang is currently the Vice President of the Asia Pacific Region of LANXESS Polyurethane Systems Business Unit (URE).
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