Lanxess to break ground in Singapore for world’s largest Nd-PBR plant in September

According to Lanxess, engineering work has advanced considerably since June 2011, when the company announced it had selected Singapore as the site for the new plant. “I am delighted to announce that it is now full steam ahead for the second largest investment project in our company’s history,” said Lanxess’ Chairman of the Board of Management, Axel C. Heitmann, at an event in Singapore to sign contracts with key suppliers.

At the event, Heitmann announced that Lanxess has signed contracts with key suppliers to its Nd-PBR plant. With these suppliers in place, the project execution phase can now start to set up the infrastructure for the construction of the plant.

Petrochemical Corporation of Singapore (Private) Limited (PCS) has agreed on a long-term supply of butadiene to Lanxess. PCS is building a new butadiene extraction unit and associated infrastructure necessary to supply the raw material. Both companies had signed a Memorandum of Understanding already in June last year regarding the supply.

“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,” said Akira Yonemura, PCS Managing Director. “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.”

In addition, Singapore’s TP Utilities Pte Ltd (a wholly-owned unit of Tuas Power Ltd) will provide steam to the Nd-PBR plant. TP Utilities is adding 650 t per hour of steam capacity to its existing biomass-clean coal cogeneration plant on Jurong Island, which currently has 500 t per hour of steam capacity and 100 MW of electricity generation capacity.

“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,” said Lim Kong Puay, President and Chief Executive Officer of Tuas Power Ltd, and Director of TP Utilities Pte Ltd. “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’ new Nd-PBR plant will be located on Jurong Island next to the company’s butyl rubber plant, which represents the company’s single-largest investment at EUR 400 million (~SGD 675 million). It is currently under construction and will come on stream in the first quarter of 2013. Construction of the butyl rubber plant is progressing according to schedule, says Lanxess. The installation of infrastructure and steel has been successfully completed. Most of the equipment is on site and installed. More than 2,000 workers are currently employed on the construction site.