On Wednesday, April 29, 2026, German specialty chemicals giant LANXESS inaugurated a high-tech blending plant at its existing manufacturing site in Jhagadia, Gujarat.
The facility is a strategic addition to LANXESS’ Lubricant Additives (LAB) business unit, designed to localize the production of high-performance additives that were previously imported. This move aligns the company’s global technical standards with India’s rapidly growing industrial and automotive lubricant requirements.
Facility Overview: Precision Blending
The Jhagadia site is one of LANXESS’ most advanced global locations, and this new expansion focuses on high-margin specialty chemicals.
- Primary Output: Specialty lubricant additives, including antioxidants, friction modifiers, and extreme-pressure additives.
- Geographic Reach: While the plant is a “Make in India” initiative, it is designed as a regional export hub catering to the Middle East and other high-growth global markets.
- Vertical Integration: The blending plant is supported by the Application Technology Center established at the same site in 2025, which provides localized testing and custom formulation services for Indian OEMs.
The Strategic Partnership with IOCL
A major highlight of the inauguration was the signing of a Memorandum of Understanding (MoU) with Indian Oil Corporation Limited (IOCL).
- Technology Transfer: LANXESS will bring its cutting-edge additive chemistries to IOCL’s extensive lubricant portfolio (SERVO).
- Market Leadership: As India is the third-largest lubricants market globally, the partnership allows LANXESS to tap into IOCL’s massive distribution network while helping IOCL upgrade its products to meet evolving BS-VI (and future) emission standards.
- Third-Party Manufacturing: LANXESS has also officially commenced third-party manufacturing activities in India, allowing other global additive players to utilize its Jhagadia infrastructure for local blending.
Why Jhagadia? The Industrial Logic
The choice of Jhagadia as the investment site offers LANXESS several structural advantages:
- Logistics: Proximity to major ports in Gujarat facilitates easy export to the Middle East.
- Ecosystem: Jhagadia is a chemical cluster, providing ready access to specialized raw materials and a skilled workforce trained in handling hazardous chemicals.
- Sustainability: The Jhagadia site is known for its advanced wastewater treatment and focus on reducing the carbon footprint of chemical processing.
“India is a key growth region for us. After setting up our Application Technology Center in 2025, the commissioning of this new production site is the next milestone in our commitment to this market.” — Neelanjan Banerjee, Global Head of Business Unit Lubricant Additives, LANXESS.
