LANXESS starts construction of €400m rubber plant in Singapore

17 May 2010 09:45  [Source: ICIS news]

SINGAPORE (ICIS news)--German producer LANXESS signalled the start of construction of a new €400m ($494m) butyl rubber plant in Singapore, expected to start operations in the first quarter of 2013.

The company broke ground at the 200,000 square-meter site in Jurong Island, where the 100,000 tonne/year plant would be built.

"In terms of volume, this investment is the largest in our five-year history. It underlines our commitment to synthetic rubber as well as to our customers and to the future growth markets in Asia,” said LANXESS CEO Axel Heitmann in a statement.

Butyl rubber is used in tire tubes for cars, trucks, bikes, among others; and has special applications in the pharmaceuticals industry.

“The neighbouring Shell refinery will ensure a long-term supply of isobutene, the main raw material for the production of synthetic rubber,” LANXESS said in a statement.

Dutch energy giant Shell has a 400,000 bbl/day refinery in Pulau Bukom, south of Singapore’s main island.

LANXESS, which recently moved its global headquarters for butyl rubber in Singapore, said it expected the market to grow at an average of more than 3% in the coming years.

Its rubber plants in Zwijndrecht, Belgium and Sarnia, Canada are currently producing at high capacity, it said.

($1 = €0.81)

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By: Pearl Bantillo
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