Execution of Lanxess Butyl Rubber Project in ‘Full Swing’

Following the naming of key suppliers for its new 400 million euro butyl rubber plant on Singapore’s Jurong Island, Lanxess states that the facility’s project execution phase, in which the infrastructure necessary for the plant’s construction is being set up, is now in “full swing”. The current construction schedule calls for the plant to be ready in time for production to start in the first quarter of 2013.

Lanxess reports it has finalised contracts with Sembcorp Industries Ltd, TP Utilities Pte Ltd, Foster Wheeler Asia Pacific Pte Ltd and Stolthaven Singapore Pte Ltd. The company has already signed an agreement with Shell Eastern Petroleum (Pte) Ltd to supply Raffinate 1 – a product created through butadiene extraction – by pipeline from neighbouring Bukom Island, which is part of the Shell Eastern Petrochemicals Complex.

“Lanxess has a global sourcing strategy, which is characterised by an extremely competitive bidding process that is both fair and open,” said Dr. Ron Commander, Global Head of Lanxess’ Butyl Rubber business unit. “This underlines our commitment not only to best-in-class manufacturing, but also to uphold the highest level of integrity in our relationship with supply-chain partners.”
 
Sembcorp will treat process wastewater from the butyl rubber plant, while TP Utilities will provide the facility with steam, high-grade industrial water and demineralised water. The contract for engineering, procurement services and construction management (EPCm), was awarded to Foster Wheeler, a Swiss company that has operated in Singapore for more than 30 years. Stolthaven Singapore, a subsidiary of the Norwegian listed company Stolt-Nielsen Group S.A., will provide Lanxess with a pipeline as well as intermediate storage for chemicals and liquefied petroleum gasses, such as Raffinate-1, Raffinate-2 and isobutylene. The storage facility will be housed in a new storage terminal, which is expected to be ready by the third quarter of 2011.