SPEECH BY MR LIM HNG
KIANG, MINISTER FOR TRADE AND INDUSTRY,
AT THE OPENING CEREMONY OF LANXESS’
NEODYMIUM BUTADIENE RUBBER (“ND-BR”) PLANT ON 27 AUGUST 2015, 10.45AM, AT
JURONG ISLAND
Dr Steffen Koch, Acting
Head of Mission of the German Embassy
Mr Matthias Zachert, Chairman
of the Executive Board of Lanxess AG
Mr Jorge Nogueira, Head
of the Tire and Specialty Rubbers Business Unit of Lanxess AG
Distinguished guests,
Ladies and Gentlemen,
Introduction
1.
Three years ago, I had
the pleasure of attending the gala dinner for the groundbreaking of Lanxess’ Neodymium
Butadiene Rubber, or Nd-BR plant. At the
gala dinner, we launched the construction of Lanxess’ second investment on Jurong
Island. I am privileged to be involved
in this project from its groundbreaking to its opening ceremony today.
Singapore continues to be a
good location for businesses to drive growth in the region
2.
This celebration takes
place in a time of low oil prices, which amplifies the uncertainty of our
complex world. The silver lining amid
the uncertainty is unquestionably the growth of emerging economies in the
region, which will be driving the continued development of the chemicals sector.
Chemical sales in Asia, for example, are
expected to grow at a compound annual growth rate of 4 to 5 per cent per annum
over the next 10 years.
3.
Riding on this growth,
Singapore can play a significant role for companies looking to tap on
opportunities in this region – by becoming a strategic base from which companies
manage their Asian operations. This has
been evident in recent years, when we have seen our business partners leveraging
Singapore to grow their Asian businesses, develop Asian-centric innovation, and
harness regional talent. Singapore’s
strong talent pool, global connectivity and business friendly policies have
created a conducive environment for companies to chart their regional growth
from Singapore.
4.
Lanxess is an excellent
example of a company which has chosen Singapore to capitalise on the growth in
Asia. Since 2005, Lanxess has been managing
and expanding its sales in the region through Singapore. The Asia Pacific headquarters for its Tire and
Specialty Rubbers business unit is also located here. Lanxess’ headquarters is home to a wide range
of business functions, encompassing procurement and supply chain management, as
well as business development roles for the region.
5.
But manufacturing was
where Lanxess built its roots in Singapore to supply Asia. Lanxess’ manufacturing operations in Singapore
began with the investment of its first Butyl Rubber manufacturing plant. And today, we are witnessing the sustained
growth of Lanxess’ manufacturing base with the Nd-BR plant.
Through a new partnership
with the Construction Industry Institute (CII), this industry has been
proactive in improving process construction and maintenance productivity
6.
I understand that this project
was completed on time, on budget, and without any safety incidents. I would like to congratulate Lanxess on this
achievement. Safety is of paramount
importance and this smooth construction also translates to a quick response to meet
the needs of a sophisticated regional market – a critical success factor in
capturing the rapidly growing demands of Asian consumers.
7.
Recognising the
significance of the Process Construction & Maintenance (PCM) sector, plant
owners, contractors and the Association of Process Industry (ASPRI) came
together late last year to form a Productivity Council (PC) with the objective of
enhancing the PCM sector.
8.
I am happy to announce
that this industry-led Productivity Council has recently initiated a three-year
partnership with the Construction Industry Institute (CII) in Texas. This partnership, co-funded by industry and the
government, will study and implement best practices for project management, as
well as implement a certification system on productivity.
9.
The Productivity Council
has formed three workgroups to achieve these deliverables. The first will support the development of a
benchmarking programme by CII, which will demonstrate the benefits of
project-level productivity improvement. The second will be responsible for certification, while the third will
look at mechanisation initiatives.
10.
This multi-faceted partnership
will culminate in the establishment of a Centre of Excellence (CoE) for
knowledge retention, and the management of the certification program. Through
the CoE, continuous productivity improvement will ensure that our PCM companies
remain competitive.
Singapore supports
companies with environmentally-friendly products and processes
11.
To compete globally,
companies also need to stay ahead of the curve and understand their customers
better. Today, a growing consciousness on
the importance of environmental sustainability means that consumers are
becoming more demanding of the products they consume. I understand that tires made from Lanxess’
butadiene rubber have longer lifespans and lower fuel consumption for cars
using such tires. Beyond the obvious
benefit of petrol cost savings, less carbon is emitted and the environment
benefits as well.
12.
Beyond supporting environmentally-friendly
products, Singapore also works closely with companies on Energy Efficiency
projects to reduce their energy consumption. Through such projects, companies are able to reduce
their carbon footprint and achieve sustainable growth.
13.
These projects range
from simple defect rectification works to more complex technology upgrades such
as retrofits with more efficient chillers. To date, on Jurong Island alone, we have 22 projects
worth S$416 million, and we hope to continue helping our companies reduce their
energy reliance and carbon footprints. We
look forward to having Lanxess as a strong partner in this process.
Conclusion
14.
Ladies and gentlemen, I
would like to extend my heartiest congratulations to Mr Zachert and the Lanxess
team on the opening of your Nd-BR plant. Thank you for your continued trust and confidence in Singapore. We look forward to many more years of fruitful
partnership.