In February 2008, the specialty chemicals group announced the construction of a new butyl rubber facility on Jurong Island. LANXESS has earmarked a record amount of EUR 400 million for this investment.

The 100,000 tons per annum plant on Jurong Island will require an investment of up to EUR 400 million.

The plant will help serve the rising demand for tires that is being driven by the trend towards greater mobility, in particular among the growing middle-class in countries such as China and India. In addition, the distinct properties of butyl rubber make it an important product of choice for the pharmaceutical industry, in particular in Asia.

LANXESS will lease about 200,000 square meters of land from the JTC Corporation, an authorized agent of the Singapore Ministry for Trade and Industry, to build the plant. The neighboring petrochemical refinery belonging to Shell will supply the feedstock for the key raw material isobutene to LANXESS’ rubber plant as part of a long-term agreement. In addition, the company will create about 200 highly-skilled jobs for the new facility and plans to fill the majority of positions locally. At peak construction times, around 1,500 workers will be employed at the construction site.

A complete evaluation of the existing process to manufacture butyl was carried out for the new Singapore facility and a radical redesign will be implemented. The process, which draws on LANXESS’ long history of rubber expertise, will be best in class. As a result, the butyl plant will be more energy and resource efficient as well as environmentally friendly.