SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION, AT THE OFFICIAL OPENING OF LUCITE INTERNATIONAL SINGAPORE’S ALPHA-1 PLANT ON MONDAY, 9 NOVEMBER 2009, 1505 HRS AT SAKRA, JURONG ISLAND

Mr Masanao Kambara

President, Mitsubishi Rayon Company,

Mr Ian Lambert, CEO, Lucite International,

Distinguished Guests,

Ladies and Gentlemen,

Good afternoon

Introduction

I am pleased to join you today for the official opening of Lucite’s Alpha-1 plant.

Significance of the Alpha-1 Plant

This is an important milestone for Singapore in the development of our specialty chemicals sector. This plant is the first in the world to employ the Alpha technology to produce methyl methacrylate (or MMA) on a commercial scale. With this new process, widely available low cost raw materials such as ethylene can be used as a feedstock. Cost-wise this will be significant in freeing the methacrylates industry from its traditional dependence on conventional materials such as hydrocyanic acid and isobutylene. The total cost of production is likely to be reduced by as much as 40 per cent. The Alpha technology is also more environmentally friendly since no toxic or corrosive chemicals are used in the production process.

With the opening of Lucite’s pioneering Alpha-1 plant, Singapore’s MMA manufacturing output will be given a further boost. JurongIsland is set to become the largest MMA manufacturing site in the world. CMR Chemical Profile has projected that global demand for MMA is growing at an average of 3 per cent[1] per year. Much of this demand emanates from Asia, particularly China, India, and increasingly, ASEAN. Singapore is, therefore, well placed to be a key supplier of MMA to the region.

Positioning the chemical industry for its next phase of growth

The outlook for the rest of the chemicals industry continues to be positive. Demand in recent years for chemicals, from basic petrochemicals to specialties, and increasingly, advanced materials with superior performance, has been growing rapidly. By 2015, Asia will account for 50 per cent of global demand for commodity chemicals. To prepare for the next phase of growth, the Singapore government is pushing ahead to strengthen the competitive edge of our chemicals industry. We are investing in infrastructure to enhance the robustness of operations on JurongIsland as well as the optimisation of valuable resources such as energy, land and water. We are also working closely with companies to support new measures in addressing environmental challenges.

We also share your belief and that of other global industry players that we must invest in people and strengthen our capability in infrastructure and new technologies if we are to stay at the forefront of this industry. Singapore will strive to remain a competitive and dynamic place where you can grow and expand your businesses.

Singapore: Seeding new firsts in technology

We will also continue to invest heavily in R&D to achieve higher value through specialty chemicals and advanced materials. This will enable us to meet evolving market needs and move the industry up the value chain. We aim to progress from being a “fast adopter of technologies” to becoming a “first implementer” and eventually a “creator of new technologies”. Our research institutions are driven by the industry’s needs, and offer companies opportunities to translate their laboratory research into demonstration and commercial-scale plants. Lucite’s investment in Singapore is a testimony of how Singapore can indeed partner companies to commercialise pioneering technologies into the world market. It is also a positive indication that we are well-positioned to become a regional R&D hub.

Conclusion

As one of the world’s leading chemical hubs, Singapore has attracted a plethora of global industry players to establish operations here. Singapore is pleased that Lucite, the world leader in methyl methacrylate, has decided to base the world’s first Alpha technology MMA plant here in JurongIsland. I thank you for your strong vote of confidence in us and I look forward to the further development of this strategic partnership between Mitsubishi Rayon Company, Lucite International and Singapore.

On this note, I would like to declare Lucite’s Alpha-1 plant officially open and I wish you every success in your ventures.