A Century of “Long-termism” – From Germany to China

Lanxess’s roots in China run deeper than many realize. “If we trace back to the Bayer Group, Lanxess has been present in China for over a century,” said Rockel. In 2018, the company established its Asia-Pacific headquarters in Shanghai, setting the stage for future growth.

As a leading specialty chemicals player, Lanxess operates across three segments: Consumer Protection, Specialty Additives, and High-Quality Intermediates. It employs around 11,600 people across 32 countries and posted €5.7 billion in sales in 2025. “Our strategy is to maintain a leading position in medium-sized global markets, drive growth, expand in the Americas and Asia, while strengthening our stronghold in Europe,” Zachert explained.

Several milestones mark 2026: the 20th anniversary of the Saltigo brand (active ingredients for agro, pharma and fine chemicals), 100 years of iron oxide pigment production (coatings, construction and industrial applications), and 40 years of the Virkon® disinfectant range in animal hygiene and disease control. These businesses have stood the test of time and form the backbone of Lanxess’s resilient portfolio.

New Office: A Fresh Base for Deeper Local Engagement

“The new office is an important step in deepening our presence in China,” said Zachert. “Going forward, we will leverage our global platform and robust supply chain to drive local innovation, optimise production footprints, and respond more efficiently to the evolving needs of Chinese customers.”

The new office is located in a rising business hub of Hongkou District. Rockel noted, “We’ve moved from Xintiandi to this dynamic new area, with excellent transport links. Having all business units on one floor enhances collaboration across functions and boosts operational efficiency.”

Lanxess currently operates five offices, seven R&D and production sites, and employs 520 people in China. Shanghai serves as the hub not only for Greater China but also for Asia-Pacific. The company’s Asia-Pacific Application Development Center (AADC), now five years old, has generated multiple patents and continues to strengthen local application development and technology transfer.

A Silver Lining from Middle East Turmoil: Supply Chain Resilience Pays Off

Just before the office opening, Lanxess released its Q1 2026 results. Sales came in at €1.378 billion, down 13.9% year-on-year, while EBITDA before exceptional items fell 29.3% to €94 million.

Amid the headwinds, the Middle East conflict has created a temporary market tailwind for Lanxess. “Due to the disruptions, many Asian suppliers have faced supply chain bottlenecks, and customers are turning back to European suppliers like us. Delivery capability has become a key competitive advantage,” Zachert revealed. The company has raised prices on several products to pass on higher raw material, energy, and logistics costs.

Asked about customer acceptance of price hikes, Zachert noted that opinions are divided – some believe consumers may not slow spending and could even increase outlays in the second half. On direct impact from the Middle East conflict, he said it has been minimal so far, with production stable thanks to resilient value chains. He highlighted that many Asian countries reliant on oil and gas have suffered product shortages and declared force majeure. “In China, however, I have not seen that. Strategic reserves are adequate, and despite higher oil prices, our Ningbo plant has not been significantly affected.” In Asia, especially China, full-year sales remain relatively stable, supported by local production and a reliable supply network.

From “Manufacturing Base” to “Innovation Hub”

Lanxess’s confidence in China is rooted not only in supply chain resilience but also in the country’s vibrant innovation ecosystem.

Zachert summarised Lanxess’s logic in China as sustained growth, continuous innovation, and proximity to customers. The Ningbo production site and the Shanghai AADC exemplify the company’s long-term commitment to green manufacturing and local R&D. This year marks the 10th anniversary of the Ningbo plant’s operation. In 2018, it became the world’s first iron oxide pigment manufacturer to be recognised as a “National Green Factory” in China.

“Over the past 5–10 years, China has developed an excellent innovation ecosystem,” Zachert observed. Many new technologies are being rolled out rapidly and adopted globally. Citing recent visits to a robotics firm and a logistics company in Hangzhou, he noted China’s strong efforts in standardising and globalising new technologies. “China has its Five-Year Plans; this year is the 15th. From initial development to self-sufficiency, and now to creating new technologies that benefit the world – our goals align with China’s. We want win-win outcomes.”

Outlook: Finding Certainty amid Uncertainty

On the full-year outlook, Zachert struck a cautious tone: “I don’t expect 2026 to be a year of rapid growth; it will likely resemble 2025. Tariff increases hit our performance last year, and growth was limited. The first quarter of 2026 has also been challenging due to the Middle East conflict.”

Nevertheless, Lanxess maintains its full-year guidance of €450–550 million in EBITDA before exceptional items. For Q2, the company expects adjusted EBITDA of €130–150 million, significantly above Q1. Zachert revealed that supply-chain benefits from the Middle East situation are already visible – demand for high-quality intermediates is up, and prices have been raised to offset costs.

In a volatile global chemicals cycle, Lanxess’s path is clear: deepen its roots in China and drive growth through innovation. As Zachert put it, “Only through peace and free trade can we restore consumer confidence and boost economic development. We are prepared – and when the situation changes, we will be ready to move decisively.”