SINGAPORE (May 17, 2010)—Lanxess A.G. has broken ground for the construction of a butyl rubber plant in Singapore.
The much-delayed facility on Jurong Island is designed for a capacity of 100,000 metric tons per year and will require an investment of up to $575 million.
The unit is due to come on-stream in the first quarter of 2013. The butyl rubber market is expected to see average growth rates of over three percent again in coming years.
At present, the two Lanxess rubber plants in Zwijndrecht, Belgium, and Sarnia, Canada. are producing at high capacity.
The rubber plant is being built on an area of 200,000 square meters. The property is leased from JTC Corp., an authorized agent of the Singapore Ministry of Trade and Industry. The neighboring Shell refinery will ensure a long-term supply of isobutene, the main raw material for the production of synthetic rubber.