01 March 2012 08:28 [Source: ICIS news]
SINGAPORE (ICIS)--LANXESS will break ground on its 140,000 tonne/year neodymium polybutadiene rubber plant in Singapore on 11 September, the German specialty chemicals maker said on Thursday.
The company will spend about €200m ($267m) on the construction of the plant, which will be built next to its new 100,000 tonne/year butyl rubber plant. The butyl rubber plant is under construction and is scheduled to come on stream in the first quarter of 2013, LANXESS said in a statement.
The neodymium polybutadiene rubber plant is expected to start up in the first half of 2015, it said, adding that it will be the world’s largest.
LANXESS announced its plans to build this facility in early June last year and signed an agreement with Petrochemical Corporation of Singapore (PCS) for the long-term supply of butadiene (BD) feedstock via pipeline.
BD is the key raw material which is used to produce neodymium polybutadiene rubber.
According to LANXESS, the demand for environmentally friendly tyres is growing at an annual rate of about 10% worldwide and 14% in Asia.
The introduction of tyre labelling is expected to accelerate this demand, the company said.
Neodymium polybutadiene rubber is part of a tyre's compound and reduces energy consumption more efficiently than many other tyre rubbers, according to the statement.
($1 = €0.75)
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