Work on Lanxess Singapore Rubber Facility Gets Underway

Ground has been broken on Lanxess’ new butyl rubber factory site in Singapore. When completed, the Jurong Island facility will have a 100,000 tonne capacity, which Lanxess states will enable it to meet the rising Chinese and Indian demand for butyl rubber to use tyre production. Following a total investment of up to 400 million euros – 10 to 15 per cent of which will be directed into environmental protection measures – production is anticipated to get underway in the first quarter of 2013.

“In terms of volume, this investment is the largest in our five-year history,” said Lanxess CEO Axel C. Heitmann at the plant’s groundbreaking ceremony on May 17. “It underlines our commitment to synthetic rubber as well as to our customers and to the future growth markets in Asia.”

The new plant is being built on an area of 200,000 square meters. The property is leased from JTC Corporation, an authorised agent of the Singapore Ministry of Trade and Industry. The neighbouring Shell refinery will ensure a long-term supply of isobutene, the main raw material required for the production of synthetic rubber. According to Lanxess, the facility will create some 200 new, highly skilled jobs. “I also welcome Lanxess’ decision to relocate its Butyl Rubber Global Headquarters and its top management to Singapore, said Mr Lim Hng Kiang, Singapore’s Minister for Trade and Industry.” It affirms Singapore’s value as a strategic vantage point in the region for global companies.”

 As mentioned above, between 10 and 15 per cent of the cost of building is to be invested in modern technologies engineered to protect the environment. Lanxess explains that the technology used will enable the manufacturing process to take place with the use of “significantly less steam”, thus lowering the plant’s overall energy consumption. Furthermore, flue gas purification systems will break down undesirable chemical compounds and release lower volumes of greenhouse gases, and wastewater production will be halves through the use of a modern wastewater treatment plant and closed circuits.
 
Lanxess expects that the market for butyl rubber will experience average growth rates of over three per cent in the coming years. It notes that, at present, the two Lanxess rubber plants in Zwijndrecht, Belgium and Sarnia in Canada are producing at high capacity.