LANXESS to construct world's largest Nd-PBR plant in Singapore

LANXESS will break ground for its new neodymium polybutadiene rubber (Nd-PBR) plant in Singapore on September 11 this year. The company plans to invest roughly EUR 200 million (about SGD 340 million) in a 140,000 metric tons per annum facility in Jurong Island Chemical Park. The facility will be the largest of its kind in the world and serve the growing market for “Green Tires”, especially in Asia. About 100 jobs will be created. The plant is expected to start up in the first half of 2015.

Engineering work has advanced considerably since June 2011, when the company announced it had selected Singapore as the site for the new plant. “I am delighted to announce that it is now full steam ahead for the second largest investment project in our company’s history,” said LANXESS’ Chairman of the Board of Management, Axel C. Heitmann, at an event in Singapore to sign contracts with key suppliers.

“We are delighted that LANXESS has chosen Singapore as the preferred location for its high value-added specialty rubber project. This second manufacturing project from LANXESS marks yet another milestone for LANXESS’ partnership with Singapore,” said Leo Yip, Chairman of the Singapore Economic Development Board. “Singapore has provided feedstock integration opportunities and critical capabilities to support LANXESS’ know-how intensive process. Coupled with the Asia growth story, where specialties demand continues to grow with increasingly sophisticated consumer needs, we are glad that LANXESS has decided to grow its business from Singapore.”

Mr. Heitmann announced that LANXESS has signed contracts with key suppliers to its Nd-PBR plant. With these suppliers in place, the project execution phase can now start to set up the infrastructure for the construction of the plant.

Petrochemical Corporation of Singapore (Private) Limited (PCS) has agreed on a long-term supply of butadiene to LANXESS. Butadiene is the raw material LANXESS needs to produce Nd-PBR. PCS is building a new butadiene extraction unit and associated infrastructure necessary to supply the raw material. Both companies had signed a Memorandum of Understanding already in June last year regarding the supply.
 
In addition, Singapore’s TP Utilities Pte Ltd (a wholly-owned unit of Tuas Power Ltd) will provide steam to the Nd-PBR plant. TP Utilities is adding 650 tons per hour of steam capacity to its existing biomass-clean coal cogeneration plant on Jurong Island, which currently has 500 tons per hour of steam capacity and 100 Megawatt of electricity generation capacity.

LANXESS had conducted a feasibility study to evaluate potential locations for the plant in Asia. Singapore won due to a very good raw materials supply, its excellent infrastructure, highly-skilled workforce, large sea port and close proximity to key customers in the booming Asia region.

LANXESS is the market leader for Nd-PBR used in “Green Tires” - the fastest growing sector in the tire industry, with an annual global growth rate of about 10 percent. Growth is even more pronounced in Asia at 14 percent per year.

Demand is being driven by the megatrend mobility, above all in the regions of Asia and Latin America, as the middle class there becomes more affluent. In addition, demand will be accelerated by tire labeling being introduced around the world. November 2012 will see the launch of mandatory tire labeling in the European Union. Tires will be graded from A to G according to their fuel efficiency and wet grip. Rolling noise is also measured. Therefore, the new legislation provides more transparency for consumers by highlighting the added value of “Green Tires”.

Japan and South Korea were the first countries in the world to introduce a label system. After a voluntary tire label was introduced in Japan in January 2010, South Korea launched its voluntary labeling in November 2011 and will introduceNike Kevin Durant