China's urbanization process and its rapidly growing middle class, which together are creating increased demand for personal transportation and medical care, are the major reasons for Lanxess AG's largest-ever investment in Asia.

The Germany-based specialty chemical company invested 400 million euros ($522.6 million) in its new butyl rubber plant with an annual production capacity of 100,000 metric tons on Jurong Island in Singapore.

The goal of the plant is better serving the growing demand in the Asian market, especially China and India, said Axel C. Heitmann, chairman of the board of management of Lanxess, on Tuesday during the plant's inauguration.