Speech by Second Minister S Iswaran at the Opening of the Advanced Remanufacturing Technology Centre (ARTC) and JTC CleanTech Park

Mr Lim Chuan Poh, Chairman, Agency for Science, Technology and Research (A*STAR)

Mr Png Cheong Boon, CEO, JTC Corporation

Distinguished Guests

Ladies and Gentlemen

Introduction

Good morning.  I am pleased to join you today at the opening of the Advanced Remanufacturing and Technology Centre (ARTC) and the JTC CleanTech Two @ CleanTech Park.

Strong global growth in Cleantech and Remanufacturing offer opportunities for Singapore

Environmental sustainability is high on the global agenda.  The United Nations Conference on Sustainable Development in 2012 (the “Rio+20” conference) brought together key stakeholders from 192 member states to address environmental issues such as pollution and energy shortage.  The conference secured more than 700 voluntary commitments towards sustainable development, and also forged collaborations to develop potential solutions, in areas such as renewable energy¹. This worldwide focus on environmental sustainability, and the resulting quest for solutions, has led to the rapid growth of two sectors which present promising business opportunities for Singapore companies.

The first is remanufacturing.  Remanufacturing focuses on ways to extend the useable life of products by restoring or improving on their original engineering specifications. Remanufactured components are cost-efficient and sustainable alternatives for companies, compared to producing or procuring new parts.  In a climate of rising resource costs and concerns over environmental sustainability, the use of remanufactured components is fast gaining international traction.

The remanufacturing industry in the United States, which is currently valued at US$50 billion and supports 180,000 jobs, is growing fast at 15 per cent per annum².  Remanufacturing is also gaining prominence in Asian countries such as China, with the Chinese remanufacturing market growing from US$0.40 billion in 2010 to a projected US$8 billion in 2015³. In view of this outlook, the Singapore Economic Development of Singapore (EDB) has identified remanufacturing as a key sector in its Future of Manufacturing initiative, which aims to make Singapore a regional hub for advanced manufacturing processes.

The second sector is clean technology, or Cleantech, which focuses on products and services that enable greater energy efficiency and mitigate the impact on the environment.  The sector shows strong growth potential, with its global market size expected to more than double from US$2.3 trillion in 2012 to about US$5 trillion in 2025⁴. In Asia alone, the market potential for Cleantech investments is estimated to be between US$20 billion and US$50 billion each year, between 2014 and 2020⁵.

R&D and innovation are critical enablers to help our companies seize opportunities in these sectors

R&D and innovation are key enablers to help our companies develop the requisite capabilities so that they can tap on the growing opportunities in these two sectors.  Singapore has already laid the foundation for our companies to leverage the growth potential in these sectors. The Government’s early support for these sectors includes JTC CleanTech One, the first phase of CleanTech Park.  Since its opening in 2013, CleanTech One has fostered collaboration between businesses, public research institutes and government agencies in developing Cleantech capabilities.  The Park itself has also served as a living laboratory and facilitated the test-bedding of 14 Cleantech solutions such as photovoltaic module development, membrane refinement and fuel cell testing.

CleanTech One has also contributed to the decision by notable companies to locate in Singapore.  DHI, one of the leading environmental consultancies from Denmark, is one example.  DHI has set up its largest base outside Denmark in CleanTech One, where it employs more than 200 staff.  It provides engineering services and also conducts R&D in the fields of water, environment and energy in its CleanTech One facility. 

On the Remanufacturing front, A*STAR’s Singapore Institute of Manufacturing Technology (SIMTech) launched its Sustainable Manufacturing Centre in 2009 to investigate the feasibility of remanufacturing marine fuel injectors to support sectors such as marine and aerospace.  A*STAR also started the Innovations in Remanufacturing Programme in 2011, an initiative to increase the visibility of remanufacturing in the local research community.  The Programme brought together 20 researchers from the National University of Singapore (NUS), Nanyang Technological University (NTU) and A*STAR research institutes to work on 10 projects which developed pioneering capabilities, such as the remanufacturing of combustion engines.

Moving ahead, CleanTech Two and ARTC will deepen the Government’s efforts to strengthen our capabilities in these two areas.  CleanTech Two will offer 22,000 square metres of specially designed laboratory and office space to support the R&D efforts of key Cleantech companies.

One of the tenants in CleanTech Two is Aquaporin, a company originally incubated by international water technologies consultancy DHI Water and Environment at JTC CleanTech One.  Since its incorporation in 2011, Aquaporin has developed cutting-edge biomimetic water treatment membranes.  It has grown and now made the decision to take up its own space in JTC CleanTech Two for its prototyping production.  Aquaporin will embark on a three-year R&D project costing over S$5 million to develop capabilities in forward osmosis membranes offering higher efficacy in water treatment.

The CleanTech Two building itself will also serve as a ‘living laboratory’ to support the test-bedding of innovative sustainable solutions.  It will host the first climate performance test of flexible solar films in the tropics - a project undertaken by local SME vTrium Energy.  This was one of six projects by local companies selected in the most recent grant call issued by JTC and SPRING for sustainable technologies to be tested in JTC’s developments.  Three of the other five projects will also be test-bedded in CleanTech Park, underscoring CleanTech Park’s commitment to involve our SMEs and startups in the development of new Cleantech capabilities.

The Advanced Remanufacturing and Technology Centre (ARTC) will be the anchor tenant of CleanTech Two.  It is a collaborative research platform between A*STAR, NTU and over 29 local and global industry partners, such as Rolls-Royce, Singapore Aero Engine Services (SAESL), and Electro-Optical Systems.

ARTC will be a game-changer for the Remanufacturing sector in Singapore.  It seeks to develop capabilities which will help companies in the aerospace, oil and gas, energy and automotive industries tackle the challenges of high component costs through remanufacturing.

Remanufacturing capabilities that will be developed in ARTC fall under three main areas – component repair and restoration, surface defect removal (also known as surface enhancement), and non-destructive inspection of components.  One example of the technologies being developed is an automated process which uses a liquid mask to protect 2D surfaces of components.  This will be a quicker and more accurate alternative to the current labour-intensive practice of manually applying adhesive tape to components.

With such remanufacturing capabilities, companies can reduce the time needed for their production processes, and produce components that are more durable and have a longer lifespan.

ARTC will also create a platform for our local SMEs to co-develop technologies alongside industry leaders.  There are 12 SMEs amongst ARTC’s partners.  Among these is AmpTec Pte Ltd, which has benefitted from new business opportunities.  The company is in the process of developing a dry ice blasting machine.  This innovation will provide an alternative way to clean aircraft engine components without using polluting industrial chemicals and heavy scrubbing.  This will cause less damage to the surface of the components and maintain the quality and performance of the engine.

The technologies and innovations being developed in ARTC will generate new and exciting job opportunities in manufacturing, requiring specialised, cutting-edge skills.  Examples of these jobs are robotic software engineers, additive manufacturing scientists and automated inspection engineers.  These are jobs that require the design and development of new techniques, processes and technologies, which will in turn become a key competitive advantage for our companies.

Conclusion

In conclusion, I am heartened to see the active interest and involvement of industry partners in CleanTech Two and ARTC.  The Government will continue to invest in R&D capabilities and infrastructure to support the growth of high value-added industries, and to ensure that Singapore remains a competitive and attractive base for companies, particularly our SMEs, to reap the benefits of R&D and innovation.

I wish the partners of CleanTech Two and ARTC success in their collaborations, and look forward to more meaningful partnerships that will help capture value for Singapore and create good jobs for Singaporeans.

Thank you.  

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¹

https://sustainabledevelopment.un.org/rio20.html

² US International Trade Commission, October 2012. Remanufactured Goods: An Overview of the US and Global Industries, Markets and Trade.

³

http://www.chinadaily.com.cn/bizchina/2013-11/15/content_17109323.htm

⁴

http://cleantechnica.com/2012/09/17/global-cleantech-market-expected-to-expand-to-e4-trillion-by-2020s-germany-to-capitalize/

⁵

http://www.dnvgl.com/news-events/news/cleantech-asia.aspx