Asahi Kasei to build new synthetic rubber plant in Singapore

18 October 2010 08:05  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Asahi Kasei Chemicals is constructing a new 100,000 tonnes/year solution-polymerized styrene butadiene rubber (S-SBR) plant in Singapore to capture the growing fuel-efficient tyres market, the company said on Monday.

S-SBR is a synthetic copolymer material used to improve the abrasion resistance, safety and fuel efficiency of high-performance tyres, according to the company.

Asahi Kasei would build the plant in two phases with the first phase of 50,000 tonnes/year capacity expected to be ready by June 2013, it said in a statement.

“Construction of Phase 1 will begin in September 2011,” said a company source, adding that the cost of the first phase of the project would be over yen (Y) 10bn ($123m).

The wholly-owned plant would be built in Tembusu district, on the city-state’s petrochemical hub on Jurong Island, the company statement added.

"Construction of Phase 2 will essentially begin after Phase 1 is completed... depending on final schedule adjustments," the company source added.

Global demand for high performance tyres which provide improved fuel efficiency was growing due to tightening environmental regulations and increasing awareness, the company said.

The overall market for the tyre rubber in Asia was set to grow as rapid “motorization” continues and tyre production shifts to the region, it added.

The company would study further expansions with its new S-SBR plant in Singapore while developing new products to meet “both growing demand and heightening customer requirements,” it said.

($1=Y81.1979)

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By: Nurluqman Suratman



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