Mr Lee Yi Shyan at the Opening Ceremony of Eastman Chemical Company’s New Singapore Office

SPEECH BY MR. LEE YI SHYAN, SENIOR MINISTER OF STATE, MINISTRY OF TRADE AND INDUSTRY, AT THE OPENING CEREMONY OF EASTMAN CHEMICAL COMPANY’S NEW SINGAPORE OFFICE ON 8 OCT, 1600 HRS, AT THE METROPOLIS

Mr. Mark Costa, CEO-designate of Eastman Chemical Company

Distinguished guests

Ladies and Gentlemen

Good afternoon.

Introduction

Thank you for inviting me to be part of this joyous occasion.

Eastman and Singapore share a longstanding courtship. Nearly 20 years ago, in August 1994, I joined Philip Yeo, then Chairman of EDB, to call on Mr Earnest Deavenport (Chairman & CEO) in Eastman Chemical’s headquarters in Kingsport Tennessee.  Also present were Tom Nethery, Group VP Industrial Biz, Jim Chitwood, Group VP Specialty Biz and Jim Giggery, SVP Worldwide Biz support.

Obviously the chemistry between us worked! In 1997, Eastman Chemical opened its Regional Headquarters in Singapore and it was headed by Garland (Buddy) Williamson. Two years later, Eastman established its oxo-chemicals manufacturing complex on Jurong Island. I believed it was the first such facility for Eastman outside the USA.

Over the years, Eastman added on to its Singapore operations – including manufacturing, innovation, R&D and the Asia-Pacific Regional Headquarters.  Eastman’s growth in some ways mirrors Singapore’s economic development. Together we have grown and together, we have prospered.

Strengthening Singapore’s position as a leading Energy & Chemicals Hub

Today in 2013 we face an economic landscape much different from that in 1994. Asia is growing faster than many regions in the world. Urbanisation and demographic trends are likely to translate into demand for more energy and consumables. Short term demand cycles notwithstanding, many firms operating in Asia are generally sanguine about the medium to long term prospects of the region.

It is against this backdrop that we in Singapore should continue to enhance our infrastructure and innovate, so as to value add to the region’s growth.

In terms of infrastructure enhancement, EDB and JTC are working with industry partners to update it to “Jurong Island Version 2.0”.  This initiative seeks to enhance the tenants’ collective efficiency in five core areas - energy, logistics and transportation, feedstock options, environment and water.

Where possible, we are also encouraging upstream players to expand feedstock options for downstream players. Shell’s recent investment to increase production in high purity ethylene oxides and ethoxylates is one such example.

Need for innovation as a critical driver for the future

Beyond manufacturing efficiency, we are also investing in measures that will boost the industry’s R&D and innovation capacity. For instance, to produce qualified and skilled specialists for R&D work, A*STAR, EDB and NUS have come together to set up the Institute of Chemical and Engineering Sciences (ICES) on Jurong Island. Since its inception, ICES has trained 300 staff for the industry in functional areas such as materials, chemistry and process engineering.

The chemical industry finds this ready pool of talents useful and attractive. Eastman, for instance, has recently upgraded its Asia Pacific Technical centre here to design and create products to better meet their customers’ needs.  Other companies such as BASF and Mitsui have also established their R&D centres in Singapore to service the growing Asian market. 

Conclusion

As Eastman opens its office in Metropolis, I believe it will add to the richness of ideas, creativity and innovation that can come about from interacting with other research institutions and industry players in the larger community of Metropolis, Biopolis and Fusionopolis. The next big commercial success after Teflon and Kevlar could well be coming from Eastman, right here in Metropolis.

Finally, my heartiest congratulations to Mr Mark Costa, your management team and all your hardworking staff in Singapore for the long and fruitful partnership we have enjoyed for the past two decades. I am confident that together, we can accomplish a great deal more in the years to come.

Thank you.