Cover Feature
The Singapore plant joins Lanxess’s existing butyl rubber plants in Canada and in Belgium
And although the supplies are not transportable within the island, they can be “transferred” via pipelines and through the use of a highly skilled workforce. Last year, Lanxess also started construction of a new production facility for neodymium-based performance butadiene rubber (Nd-PBR) on Jurong Island. The direct proximity of these two plants creates valuable synergies for the company, for example, through joint infrastructure and logistics. Commander also mentioned that Lanxess is able to operate on a 100% ownership in the country, meaning that it does not have to share its knowledge and proprietary technologies with other parties. Another reason for choosing Singapore for the plant is its ideal location. “Singapore is now the hub of our Southeast Asian operations, taking its place as an even more important pillar of our global rubber production activities,” he said, adding that the company had also moved its butyl rubber headquarters from Switzerland to Singapore in 2010. China is a growth backbone China is undoubtedly the current biggest market this side of Asia, accounting for about half of Asia’s 50% demand of the overall global butyl rubber sales for Lanxess. The country, along with India, is considered by Lanxess to be the growth engine for mobility. China’s passenger car ownership is expected to more than triple to 450 million units over the next 15 years, with about a 10% CAGR for both countries from 2012 to 2013, citing data culled from economic and business consultancy LMC International’s 2012 report. And while the current slow down in China may seem to be a deterrent for industry producers and manufacturers, the German chemicals firm views the situation as temporary. China may no longer grow between 11%-12% and may only achieve a target of 7% this year, said Commander at the inauguration of the Singapore facility. The decline, however, still points to a healthy growth, Commander continued, adding that many economies in the world would “still be happy” to reach that growth percentage.
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The overall sluggish Chinese economy was also a point raised by Breuers. He echoed and agreed with Commander that the company views this as a temporary phase as the country is in an economic transition. “It may be hard to predict for how long (the sluggish economy situation) it will last, but we see it recovering in the first half of 2013 through 2014,” Breuers told PRA during the press conference. Heitmann also emphasised in his remarks during the opening ceremony that Lanxess “takes a long-term view of things” and that “(it is) not discouraged by the current weakness in demand, which we view as temporary.” The Singapore BTR plant is, thus, now in a better position to serve the region, said the Lanxess officials, including its topmost customers from China, where the company has ten wholly owned subsidiaries, three joint ventures and six major R&D centres. It will also serve India, where Lanxess has manufacturing units for six of its business units. Reaching across non-tyre segments Rubber also figures in various other applications and Lanxess’s innovations span across industries that can benefit from the application of its high-end rubbers. The firm said that halobutyl rubber, which is ideally used for inner liners of modern tyres, can also be used in pharmaceutical closures due to its non-toxicity, physical and chemical properties, good resealing after puncturing and resistance to ageing. The special-purpose rubber is also required by law in some Asian countries, for example in China, for use in pharmaceutical applications. The country’s ranking, by consumption, in the global pharmaceutical sector rose from ten in 2001 to seven in 2009. It is expected to rank second place, after the US, by 2020. Examples of halobutyl rubber-made closures are those used for infusion containers, pipette assemblies and plungers for prefilled syringes. Some of the world’s biggest pharmaceutical closure manufacturers are based in Asia, hence, it is no surprise that Lanxess has set up a plant for halobutyl rubber in Singapore. Other applications for butyl rubber are protective clothing, shoe soles, adhesives and chewing gum. Its impermeability to gas and resistance to chemicals has also proven valuable in vehicle air conditioning systems and tank linings. Moreover, Lanxess has also developed a new butyl rubber product called butyl ionomers, which it says will launch new applications for butyl rubber. Apart from sports grips, improved adhesives and sealants, pharmaceutical closures (or for applications where pure rubbers are needed), and medical adhesives, butyl ionomers are suitable for use in antimicrobial coatings. Commander explained that the antimicrobial application for butyl ionomers is especially helpful even in everyday requirements, such as the rubber handgrips of supermarket pushcarts. Moreover, butyl ionomers can improve the grip on golf clubs, said Commander.