29 July 2008 08:04 [Source: ICIS news]
SINGAPORE (ICIS news)--Evonik RohMax has opened a new oil additive plant on Jurong island, Singapore, in a bid to strengthen its supply chain and bring its services closer to its Asia-Pacific customers, the Germany-based company said on Tuesday.
“This plant is designed to support the growing demand of our products in Asia-Pacific over the next 10 years. This new production site will allow us to further deepen our presence in the Asia-Pacific region”, said Dr Dirk Reese, managing director of Evonik RohMax Additives GmbH.
“We came pretty close to our budget that was announced in 2005 despite inflationary factors in the region”, said Bonnie Tully, plant manager, declining to reveal the exact cost incurred for the construction of the plant.
Evonik RohMax had announced its decision to build the oil additive plant on Jurong island, ?xml:namespace>
The company’s new additive plant represented a key pillar of its expansion plans as over 80% of products to be sold in the region would be produced in
Evonik RohMax’s new plant was equipped with the necessary infrastructure and facilities it required for future expansion plans, said Tully, adding further development to increase capacity could happen anywhere between three to 10 years depending on the rate of growth of the regional markets.
The management board however, decline to reveal the exact capacity of the plant citing company policy and competitive reasons.
“Evonik RohMax’s new lube additive manufacturing project is a significant boost to the EDB’s [Economic Development Board’s] commitment to grow the specialty chemical sector given its high value added and knowledge intensive nature”, said Ko Kheng Hwa, the agency’s managing director, adding it would further enhance integration on Jurong island.
The company’s management board expected a return on investment (ROI) of 4% over the normal rate of financing on the plant that has been constructed totally on internal funds.
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