Over €400 million investment has been put aside by Lanxess, the largest investment so far by the company in Jurong Island, Singapore. The plan is taking advantage of strong demand growth in Asia. Lanxess is the world’s second largest butyl rubber producer which total capacity will be 380,000 tonnes/year in early 2011 after the completion of the project. The Jurong Butyl Rubber chemical plant will have a capacity of 100,000 tonnes.
With MTBE being banned in many countries, isobutylene, main feedstock for butyl rubber is well sought after and global demand for butyl rubber is standing at 900,000 tonnes/year and butyl rubber is in very short supply.
The facility will also produce synthetic rubbers such as butyl and bromobutyl rubber, which are used in the production of tyres. The unit will use Raffinate-1 from Shell Eastern Petroleum butadiene extraction unit to Lanxess, which will take isobutene (isobutylene) for its rubber production.
Lanxess ambitious plan will also be looking at increasing the isoprene content of its butyl rubber for the tyre application, subsequently allowing it to open up new applications in China and India. The plan also includes expansion at its Sarnia, Canada, boosting its capacity to 150,000 tonnes/year. Lanxess also operates another 130,000 tonne/year butyl rubber unit in Zwijndrecht, Belgium.
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