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LANXESS Selects Key Suppliers for Butyl Rubber Plant in Singapore

Published on 2010-06-23. Author : SpecialChem

Leverkusen/Singapore -- LANXESS, the world's largest manufacturer of synthetic rubber, announced the key suppliers for its new butyl rubber plant on Jurong Island in Singapore. With these suppliers in place, the project execution phase is now in full swing to set up the infrastructure for the construction of the plant. Production is scheduled to start in the first quarter of 2013 and the plant represents an investment of up to EUR 400 million for LANXESS.

LANXESS has finalized contracts with Sembcorp Industries Ltd, TP Utilities Pte Ltd (a wholly-owned unit of Tuas Power Ltd), Foster Wheeler Asia Pacific Pte Ltd and Stolthaven Singapore Pte Ltd. Previously, LANXESS has signed an agreement with Shell Eastern Petroleum (Pte) Ltd to supply Raffinate 1 - a product created through butadiene extraction - by pipeline from neighboring Bukom Island, which is part of the Shell Eastern Petrochemicals Complex.

"LANXESS has a global sourcing strategy, which is characterized by an extremely competitive bidding process that is both fair and open," said Dr. Ron Commander, Global Head of LANXESS' Butyl Rubber business unit. "This underlines our commitment not only to best-in-class manufacturing, but also to uphold the highest level of integrity in our relationship with supply-chain partners."

For utility services, LANXESS has selected Singaporean companies Sembcorp and TP Utilities. Sembcorp will treat process wastewater from LANXESS' butyl rubber plant. TP Utilities will provide steam, high-grade industrial water and demineralised water to the plant.

The contract for engineering, procurement services and construction management (EPCm), was awarded to Foster Wheeler, which has operations in Singapore for more than 30 years and is headquartered in Switzerland. In addition, Stolthaven Singapore, a subsidiary of the Norwegian listed company Stolt-Nielsen Group S.A., will provide LANXESS with a pipeline as well as intermediate storage for chemicals and liquefied petroleum gasses, such as Raffinate-1, Raffinate-2 and isobutylene. The storage facility will be housed in a new storage terminal, which is expected to be ready by the third quarter of 2011.

LANXESS is a leading specialty chemicals company with sales of EUR 5.06 billion in 2009 and currently around 14,300 employees in 23 countries. The company is represented at 42 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.

Forward-Looking Statements.

This news release may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.


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