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Advanced Intermediates

The Advanced Intermediates segment comprises our businesses with basic and fine chemicals. The Advanced Industrial Intermediates business unit produces a wide range of high-quality industrial chemicals, while Saltigo operates on the custom synthesis market, specializing in tailored solutions for customers in the agrochemical and pharmaceutical sectors. Both business units are leading suppliers in Europe and are consistently expanding their positions in other regions, too.

Photo: Tractor
Another approach in green mobility is the manufacture of carbon-neutral fuels from renewable raw materials. These fuels can only be put to practical use if biodiesel stabilizers like Baynox<sup>®</sup> plus from LANXESS are added to prolong their shelf life.

Segment benefits from agriculture megatrend

The steadily growing global population is probably the key driver of the agriculture megatrend. According to the United Nations, it will rise to around 9.3 billion by 2050. The increasing number of people is also driving world demand for food. For example, the demand for cereals is expected to grow by 1.5 percent each year through 2025. Also, eating habits worldwide are changing and there is growing use of crops as alternative energy sources. At the same time, however, climate change and increasing industrialization are likely to actually decrease the amount of land available for agriculture, thus necessitating a considerable improvement in the efficiency of cultivation.

The product portfolios of our Advanced Industrial Intermediates and Saltigo business units include many key intermediates for synthesizing agrochemicals that can help farmers protect their plants and increase yields.

Advanced Industrial Intermediates expands aromatics network

The high-quality intermediate cresol is used in agrochemicals and in the manufacture of vitamin E, resins and flame retardants. We will be increasing production capacity at our Leverkusen site by around 20 percent through mid-2013. This investment of some €20 million is a further clear commitment to Germany as a production location and to our globally unique aromatics network.

Comprising a total of seven large-scale facilities, primarily at the Leverkusen site, this network is equipped with cutting-edge technologies that enable us to use, process or market almost all the aromatic compounds it produces. With its low waste levels, low transport requirements and high energy efficiency, the aromatics network is an outstanding example of sustainable chemical production.

In 2012 we were able to double our production capacities for synthetic menthol at the Krefeld-Uerdingen site as planned. Working together with a producer of fragrances and flavorings, we are one of the world’s leading manufacturers of synthetic menthol and thymol. Our output is coordinated with this contractual partner and its processes. This capital investment project has also significantly improved process efficiency. For example, the expanded plant uses a highly efficient catalyst we developed ourselves. In connection with the expansion of production capacities, measures were also implemented that significantly reduce specific energy consumption.

Baynox®, the first biodiesel stabilizer to be approved by German oil companies, has already become a near-classic in our portfolio of green products. An effective antioxidant, it ensures that the biofuel obtained from natural raw materials remains stable and can therefore be used for longer. Baynox® Solution 50% is another innovation from the Baynox® product family that has been awarded “no-harm” certification from Arbeitsgemeinschaft Qualitätsmanagement Biodiesel e.V. (AGQM). This product meets the demand from countless biodiesel producers for a liquid stabilizer with a high active ingredient content that can also be metered easily.

Antioxidants also play a key role in protecting animal feed from spoiling. They prevent the unsaturated fatty acids in the feed from becoming rancid and thus also toxic or even carcinogenic. Since 2012, we have been marketing our proven antioxidant butylhydroxytoluene (BHT) as a feed additive under the new brand name Rovelox®. Certified to the internationally standardized FAMI-QS system, this product perfectly complements our preservative Rovelan®, which has already established us as a premium supplier to the animal feed industry.

Saltigo – customized premium quality

In 2012, our Saltigo business unit raised its strategic profile significantly by sharpening its focus on the agrochemical sector. In the pharmaceutical sector, Saltigo will be concentrating on the demanding late development phases, which is where the business unit’s strengths in tailoring end-to-end solutions can be best applied.

With the start of the marketing campaign for the insecticide Saltidin® in Asia, Saltigo also continued its initiative to strengthen its market position for multi-customer products in the year under review. Given the tropical climate in many parts of Asia, the region offers excellent market opportunities for this premium product, which is highly rated by consumer organizations and has been recommended by the World Health Organization (WHO) as the substance of choice for malaria prophylaxis. Yet Saltidin® is not only of interest to the manufacturers of insecticides but also to the producers of cosmetics and pharmaceutical formulations who wish to give their products – such as sun creams – a valuable additional benefit. These customers can apply for a license to use the basic formula and, once registered, can produce and market the preparation under their own brand name.

For the second time, Saltigo has been honored by Syngenta, one of the world’s leading manufacturers of seeds and crop protection agents. At the Syngenta Supplier Conference, the business unit received the Global Sourcing Award of Recognition 2012 in the “Partnership” category. Special mention was made of Saltigo’s ability to produce new products quickly and efficiently and to continuously improve processes. Particular praise was given to the generally high product and service quality, future-focused approach and rapid response to unexpected changes in order volumes.

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