The western Indian state of Gujarat is fast emerging as the next major auto hub. Lanxess AG is tapping into the market with local production, opening an engineering resins compounding plant in Jhagadia on Jan. 31. The company also revealed plans to build a compounding plant in Brazil. The plant is the second for Lanxess in the region, after a facility in Wuxi, China. Lanxess first announced plans for the Jhagadia plant at the K 2010 trade show. Zobel said Lanxess plans to set up a plant in Brazil by 2013. “We will set up the plant around the auto hub in Brazil,” he said, although he declined to identify the location. Lanxess plans to invest $20 million in that project. Lanxess invested around 10 million euros ($13.5 million) in the Jhagadia facility, which has an annual capacity of 44 million pounds. The Indian plant will cater to carmakers like Volkswagen, Ford and Tata Motors, all of whom have already committed to major investments in Gujarat. The plant will compound Durethan polyamide and Pocan polybutylene terephthalate. About 80 percent of the output will be Durethan, Zobel said.