Lanxess Group,a German specialty chemicals company, invested 20 million euros ($23.47 million) in building a new plant to

produce high-performance plastics in Changzhou, Jiangsu province, as it expands its businesses in China.

The plant is expected to launch production in April 2019, with an annual production capacity of up to 25,000 metric tons of high-tech plastics for the automobile, electrical and electronics sectors, the company said at a news conference on Thursday.

Lanxess has operated a similar plant in Wuxi, East China's Jiangsu province since 1995.

Matthias Zachert, chairman of Lanxess' board of management, said China is one of the largest automobile markets and 

a global leader in electric vehicles. Lanxess wants to make use of these opportunities and expand its presence in China, he said.

A total of 85 million vehicles have been sold around the world so far this year. Among those, a quarter were sold in China, 

according to the company.Annual vehicle sales in the country are expected to account for one third of the global total by 2025, it said.

Lanxess' innovative materials can replace the heavy metal parts in vehicles to reduce their weight, fuel consumption and emissions.

Up to 50 percent of the weight can be saved in various components, such as engines, door structures, pedals, front ends and the cockpit.

Lanxess' materials have also been applied in hybrid and electric vehicles. Some components are involved in high-volume production, 

including the carriers and cell holders for batteries and sensors, and enclosures for electric motors. China has vast electrical 

and electronics industries. Lanxess' year-on-year growth rate in these sectors is set to reach 9 percent in China this year, 

according to the company.Michael Zobel, head of Lanxess' high-performance materials business unit, said: "The establishment of the Changzhou plant will help to enlarge the global network of compounding plants, 

and promote the research and development of highly-refined plastics."

The plant is the second production site Lanxess has built in Changzhou's Binjiang Chemical Park. The first started operation in 2015,

producing leather-related chemicals and synthetic rubber, and currently employing 350 staf members.

"Lanxess placed the new factory in Chang

The plant is the second production site Lanxess has built in Changzhou's Binjiang Chemical Park. The first started operation in 2015,

producing leather-related chemicals and synthetic rubber, and currently employing 350 staf members.

"Lanxess placed the new factory in Changzhou in response to the government's call for chemical enterprises to enter industrial parks,"

said Ming Cheng Chien, CEO of Lanxess Greater China.

"We will integrate the resources in Changzhou and achieve cross-divisional synergy to provide high-quality services and solutions for

Lanxess' old and new customers," Chien said.

Lanxess' plastic business operates in many cities around the world, including Germany's Dormagen, Krefeld-Uerdingen and

Hamm-Uentrop, Wuxi in China, Jhagadia in India and Gastonia, North Carolina in the United States.