04 June 2013 04:01 [Source: ICIS news]
SINGAPORE (ICIS)--LANXESS expects to start commercial production at its new 100,000 tonne/year butyl rubber facility at Jurong Island in Singapore in the third quarter, the German specialty chemicals firm said on Tuesday.
The €400m ($526m) butyl rubber facility came into operation in the first quarter of this year, with production “being ramped up gradually”, the company said.
LANXESS inaugurated the plant, which produces premium halobutyl rubber, as well as regular butyl rubber, on Tuesday.
The butyl rubber market is expected to grow at an annual average of 5%, driven by growth in the automotive industry, especially in Asia, according to LANXESS.
Butyl rubber is used in the production of tyres for the automotive industry.
The tyre industry now accounts for around 75% of sales at LANXESS' rubber business unit and more than 50% of sales generated in Asia, it said.
LANXESS is also currently building a new production facility for neodymium-based performance butadiene rubber (Nd-PBR) at Jurong Island.
"The direct proximity of these two plants creates valuable synergies for the company, for example through joint infrastructure and logistics," the company said.
($1 = €0.76)
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