Minister Lim Hng Kiang At The Opening Ceremony of Lanxess Neodymium Butadiene Rubber (“ND-BR”) Plant

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.