LANXESS: Production in Singapore to start in 2014

Postponement made necessary by drop in demand

30-Jun-2009 - Singapore

Due to the continuing global economic crisis, specialty chemicals group LANXESS AG is postponing the construction of its new butyl rubber facility in Singapore. Production is now scheduled to start in 2014. LANXESS will use the time to finish developing an innovative technology for butyl rubber production that will then be used at the new facility. The 100,000 tpa plant originally planned for Singapore, which would have cost up to EUR 400 million to build, had been due on stream in 2012.

“We expect the new capacity to be needed in 2014 at the earliest,“ said LANXESS Board of Management Chairman Axel C. Heitmann in Singapore. “Deferring the project by two years will enable us to continue development work based on a recent technological breakthrough to the point where a new process can be deployed on an industrial scale. We can then use this process in the future butyl rubber production facility on Jurong Island. That way Singapore will have the world’s most modern plant with a unique process technology,” Heitmann added.

Development of the technology, which so far has been tested only on a pilot scale, will be vigorously driven forward over the next 24 months to enable the process to be used in Singapore. “We will invest a substantial sum for this purpose in the coming years. The new technology uses far less resources and is considerably more energy-efficient and environmentally friendly,” explained Heitmann. From today´s perspective, the capital expenditures for the new plant will be slightly lower than originally planned.

Independent of the project postponement, LANXESS will continue to expand its presence in Singapore. The company is currently negotiating with the Singapore Economic Development Board (EDB) with a view to managing the global business of the Butyl Rubber business unit from there in the future. Said Heitmann: “This dynamic city is the hub of our activities in Southeast Asia and continues to play a key role in our highly successful strategy for the Asian region.” The Group currently runs the Southeast Asian business of all its 13 business units from Singapore.

https://www.chemeurope.com/en/news/102653/lanxess-production-in-singapore-to-start-in-2014.html