<article>Belgium-based chemicals firm <a style="color: #000080;" href="http://www.solvay.com/en" target="_blank">Solvay</a> has established an S$50 million ($36.7 million) specialty surfactants plant in Singapore. This is its largest industrial asset in Asia to date.</article>

Belgium-based chemicals firm <a style="color: #000080;" href="http://www.solvay.com/en" target="_blank">Solvay</a> has established an S$50 million ($36.7 million) specialty surfactants plant in Singapore. This is its largest industrial asset in Asia to date.
In addition to the plant, the company has expanded an oil &amp; gas lab at its Singapore research and innovation centre . The expansion of the lab is aimed at internationalising its US-based oil and gas business, to serve regional customers in production, cementing and stimulation. This expansion is especially crucial as the company seeks to cater to customers in countries with rapidly growing economies like China, Malaysia and Australia, among others.
With a production capacity of 50,000 tonnes per annum and nearly 40 permanent staff, the asset will complement existing facilities in India and China. It is also expected to contribute an eighth of global alkoxylate production volumes for <a style="color: #000080;" href="http://www.solvay.com/en/about-solvay/businesses/novecare/index.html" target="_blank">Solvay Novecare</a> when operating at full capacity in 2016. In addition to the Jurong Island plant, Solvay maintains seven other specialty alkoxylation plants worldwide.
The enhancement of its research &amp; development capabilities was initiated by its confidence that upstream oil exploration activity in Asia will continue apace, given the energy security needs driving the development of energy self-sufficiency in countries across the region.
This has been motivated by the belief that <a style="color: #000080;" href="http://www.engineeringnews.co.za/article/opec-believed-to-overstate-oil-reserves-by-70-reserves-depleted-sooner-2012-10-04" target="_blank">Saudi Arabia and OPEC have overstated their oil reserves</a>, as well as concerns over <a style="color: #000080;" href="https://en.wikipedia.org/wiki/Peak_oil" target="_blank">peak oil</a> and declining production.
Solvay&#8217;s plant &#8211; operated under its Novecare business line &#8211; will customise specialty alkoxylate formulations for customers in the agrochemicals, coatings, home and personal care, industrial, and oil and gas sectors in Asia, which has a fast-growing middle class that is driving consumption and growth.
It will serve multinational corporations (MNCs) like Unilever and Procter &amp; Gamble, in addition to smaller <a style="color: #000080;" href="https://en.wikipedia.org/wiki/Middle-market_company" target="_blank">middle-market firms</a> and local small and medium enterprises (SMEs) in Southeast Asia and the broader Asia Pacific (APAC) region.
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<h3>Solvay solutions</h3>
According to Solvay Novecare president Emmanuel Butstraen, Solvay has grown at an average of 20 per cent in its surfactants and polymer business in the past five years through both acquisitions and organic growth, surpassing the industry average of 2-4 per cent. Butstraen said, &#8220;This investment in Singapore is another step in continuing that pace going forward.&#8221;
The Jurong Island plant will receive a key raw material &#8211; high-purity ethylene oxide &#8211; via a dedicated pipeline from the nearby Shell plant. It will also procure oleochemicals &#8211; chemicals derived from plant and animal fats &#8211; from Malaysia and Indonesia, the top two global producers of palm oil.
Singapore&#8217;s proximity to both raw materials and customers were crucial factors motivating this investment in the plant, according to Butstraen.
For Cindy Koh, energy and chemicals director, Singapore Economic Development Board (EDB), the new facility attests to Singapore&#8217;s attractiveness as a location for companies looking to capture growth opportunities in the region.
Koh stated: &#8220;We will continue to build upon our existing strengths in logistics and infrastructure to bolster integration across the chemical value chain on Jurong Island to deliver greater value to companies.
Specialty chemicals companies account for a third of the S$6 billion fixed asset investments Singapore has secured for the energy and chemicals sector since 2013.
The <a style="color: #000080;" href="http://www.rolandberger.com/press_releases/global_market_for_chemicals_will_more_than_double.html" target="_blank">global chemicals market is set to double in size by 2035</a>, with Asia accounting for half of that growth. Currently, current sales worldwide are 2.6 trillion euros ($2.868 trillion).
From its Belgium base, Solvay is aware that <a style="color: #000080;" href="http://www.strategyand.pwc.com/perspectives/2015-chemicals-trends" target="_blank">Western economies will increasingly lose their relevance as a chemicals market grows</a>, with Europe predicted to account for only 13 per cent of the market share by 2035.
Shorter product life cycles, product commoditisation, difficult access to raw materials and heavy customer demands are amongst the major challenges for chemicals corporations.
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Solvay has established a specialty surfactants plant on Jurong Island, in order to cater to the growing demand from clients in emerging markets.

Solvay establishes S$50m speciality surfactants plant

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