LANXESS announced today that it has brought forward its plans to build a new butyl rubber facility in Singapore. The company will hold a groundbreaking ceremony in May 2010, and production is expected to start in the first quarter of 2013. The 100,000 tons per annum plant on Jurong Island will require an investment of up to EUR 400 million (575 million USD).

The plant will help serve the rising demand for tires that is being driven by the trend towards greater mobility, in particular among the growing middle-class in countries such as China and India. In addition, the distinct properties of butyl rubber make it an important product of choice for the pharmaceutical industry, in particular in Asia.

“We are excited to be restarting this project, which will create the world’s most modern butyl rubber plant,” said LANXESS Board of Management Chairman Axel C. Heitmann. “This investment – the largest in our five-year history – underlines our commitment to synthetic rubber, our customers and the future growth markets in Asia.” Heitmann added that LANXESS is proud to be building the plant in Singapore, which is the hub of the company’s Southeast Asian activities. The city state has excellent infrastructure, a highly-skilled workforce and very good raw materials supply.