ERJ staff report (DS)
Singapore -- Lanxess has said it will break ground on its butyl plant in Singapore in May 2010 and bring it on stream in the first quarter of 2013. It is the latest in a string of announcements over the opening date.
The company first announced the project in February 2008, saying it would break ground in January 2009. A month before the scheduled ceremony, Lanxess delayed the ground breaking to Autumn 2009. In June 2009 it then pushed the project back by a further two years with a scheduled opening in 2014.
The company's latest announcement brings it forward by a year. Lanxess said the new opeining date will allow it to serve growing demand for tyres in China and India.
â€œWe are excited to be restarting this project, which will create the world's most modern butyl rubber plant,â€ said Lanxess Board of Management Chairman Axel Heitmann.
In a starement, Lanxess said, "Global tyre sales are expected to return to pre-crisis levels in 2011 as the tyre replacement market and new vehicle production levels gradually recover. In order to meet this growing demand, Lanxess' customers - the world's leading tyre manufacturers - are planning capacity expansions in the BRIC markets."
Additionally during 2010, Lanxess will relocate the global headquarters of its Butyl Rubber business unit to Singapore from Fribourg, Switzerland, in order to better serve the rising demand in Asia. The headquarters, including all global management functions such as marketing, controlling and supply chain, will have about 35 employees initially. More than half of the company's butyl rubber sales are currently generated in the Asia region, with especially China, India and South Korea showing strong growth rates.
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Press release from Lanxess
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