Lanxess to build new neodymium polybutadiene rubber plant in Singapore

Lanxess will build a new neodymium polybutadiene rubber (Nd-PBR) plant at Jurong Island Chemical Park, Singapore.

The €200m plant is expected to produce 140,000 metric tonnes per annum (tpa) of Nd-PBR, which will be used in the treads and sidewalls of green tires.

Nd-PBR will also be used for the modification of plastics in the manufacture of high-impact polystyrene (HIPS) for injection molding applications.

The plant, which is scheduled to start operations in the first half of 2015, will use Butadiene as the raw material.

As part of the construction, Lanxess has signed long-term agreements with Petrochemical Corporation of Singapore (PCS) and TP Utilities, a wholly-owned unit of Tuas Power, for supplying the required raw material for the construction of the facility.

PCS managing director Akira Yonemura said: "We are also very pleased to announce our decision to go ahead with our new butadiene plant, which is made possible through the close collaboration with LANXESS.

"This new investment will further strengthen PCS's competitive position and we look forward to working with LANXESS for the successful completion and start-up of both our new plants."

PCS is constructing a new butadiene extraction unit and associated infrastructure necessary to provide the raw material.

TP Utilities director and Tuas Power president and chief executive officer Lim Kong Puay said: "We thank LANXESS for continuing to show strong confidence in our services by selecting TP Utilities again as a key supplier to its latest milestone project. We will be supplying steam to LANXESS' new Nd-PBR plant, when it begins operation, for a contract period of ten years, with an option to extend the service."

Lanxess said it will break ground at the Nd-PBR facility on 11 September 2012.