SPEECH BY MR LIM HNG
KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE GROUNDBREAKING
CEREMONY OF JAC’S AROMATICS COMPLEX FRIDAY, 26 AUGUST 2011 AT 3.15
PM, JURONG ISLAND
Your Excellency, Mr Oh Joon,
Ambassador of Republic of Korea,
Mr
Mehdi Adib, Chief Executive Officer, Jurong Aromatics Corporation
(JAC),
Board of Directors,
JAC
Distinguished
guests,
Ladies
and
Gentlemen,
Good
afternoon. I am pleased to join you here on Jurong Island to
celebrate the groundbreaking of JAC‟s Aromatics Complex. This is a
significant milestone for Singapore‟s chemicals industry. When
completed, it will be one of the largest in the world, with
paraxylene production capacity of 800 thousand tonnes per annum
(ktpa).
Introduction
In recent
months, the global economic outlook has become more uncertain. The
ongoing sovereign debt crisis in Europe and fiscal deficit
challenges in the U.S. threatens to dampen global growth. On the
other hand, the growth prospects for Asia remain promising. Asia‟s
rising standards of living, increasing urbanisation, and a strong
demographic trend continues to attract a strong flow of capital
investments.
The strong
demand for aromatics in Asia is a clear example of Asia‟s growing
needs. Asia alone accounts for more than two thirds of the global
demand for paraxylene. The strong and growing demand for paraxylene
is driven by two key factors. First, polyester fibres production is
migrating from Western Europe and North America to Asia, in
particular China. The other factor is rising demand for paraxylene
to produce plastic bottles and synthetic
fibres
Singapore, a strategic vantage
point in the region
In this
regard, Singapore is well-placed to be a key vantage point for
companies keen to ride the Asian Growth
Story. Our
strategic location in the heart of Asia, high connectivity and a
well-integrated physical infrastructure are some of the factors
that have made Singapore a global hub in Asia. We have also ensured
that companies setting up bases in Singapore are provided with a
conducive operating
environment.
Jurong
Island is a good example. It is home to Singapore‟s energy and
chemicals industry. Through its excellent „plug-and-play‟
infrastructure and logistics connectivity, companies on the island
also enjoy synergies through product innovation as well as cost
savings. To date, over 95 global companies have invested more than
over $30 billion on the island. These investments have helped to
make Singapore a leading global energy and chemicals
hub.
To maintain
this lead, the Singapore Government remains committed to enhancing
the long-term competitiveness and sustainability of the
industry.
Last year,
we launched the “Jurong Island version 2.0”, a new masterplan
developed by a multi-government agency team as well as key industry
players to propel the next phase of growth for the chemical
industry. The masterplan focuses on key areas of energy, logistics
and transportation, feedstock options, environment and water to
improve energy efficiency and overcome resource limitations on the
island.
Another
long term investment we have made is the construction of the Jurong
Rock Cavern. When completed by 2013, the facility will offer
companies an innovative underground storage solution on the island.
This in turn also frees up land for higher value manufacturing
operations. I understand that JAC is the first company that will
utilise the Jurong Rock Cavern for storage of its condensate
feedstock.
Singapore, a trusted location for
forging new business partnership opportunities
Our efforts
to support the growth of the energy and chemical industry continue
to help garner key investments for Jurong Island. New regional
investors have also shown confidence in Singapore. Many are keen to
use Singapore as a launching pad, to internationalise and grow
their businesses in Asia from
Singapore.
One of the
latest being JAC‟s Aromatics Complex project. A joint venture
involving eight leading international stakeholders, this project
exemplifies the confidence investors have in Singapore as a trusted
location for international companies to forge new business
partnership
opportunities.
The
Singapore Government, on its part, will continue to make Singapore
an attractive investment destination. Here on Jurong Island, we
will continue to support the integration with petrochemicals and
speciality chemicals and generate value for Singapore-based
activities. The completion of JAC‟s Aromatics Complex will also
further add to the vibrancy of the ecosystem of companies on Jurong
Island. It will strengthen Singapore‟s status as a key producer of
aromatics products. The use of condensates as a feedstock will also
add diversity to the feedstock options for chemicals production in
Singapore.
Conclusion
In closing,
let me extend my heartiest congratulations to the management and
team at JAC on the groundbreaking of JAC‟s aromatics complex. We
appreciate your confidence in Singapore and I wish JAC every
success in the execution of this project. Thank
you.