Dr Klaus Engel, Chairman and CEO of Evonik Industries

 

Distinguished guests

 

Ladies and gentlemen

 

Good morning

 

It gives me great pleasure to join you today to celebrate the groundbreaking of Evonik Industries’ methionine plant on Jurong Island. I fondly recall my first meeting with Dr Engel in Germany back in 2009, and it is indeed very nice to see you again here in Singapore on this momentous occasion. I am heartened to hear from Dr Engel just a while ago that Evonik has also decided to invest in another manufacturing facility, their polyamide-12 plant¹, next to this methionine complex on Jurong Island.

 

Today, change and uncertainty have become the watchwords of the global economy. Multiple regional crises and volatile commodity prices have led to great uncertainty for companies, including those in the chemicals industry. In such an environment, chemical companies value a stable and trusted location. Today’s groundbreaking of Evonik’s largest investment in its history, is therefore a reflection of your confidence in Singapore as that stable and trusted location.

 

 

The energy and chemicals industry contributes a third of Singapore’s manufacturing output.²  Since the early days of the industry, we have attracted about 100 global chemical companies on Jurong Island. Collectively, these companies have invested more than S$40 billion into their facilities.

 

It also creates good and attractive jobs for locals, who make up over three-quarters of the industry’s employment.³  The industry also provides some of the highest-paying jobs in the manufacturing sector.

 

We remain committed to develop this industry, and are constantly looking out for opportunities to enhance its operating and business environment. The efforts under the Jurong Island version 2.0 initiative aims to do just that. We are improving the competitiveness of our established refining base and petrochemical players. To bring resilience and value to the industry, we are also expanding the specialties community in Singapore.

 

I am heartened to note some encouraging results from our efforts. In the first half of 2012 alone, we have attracted new investments from several leading global chemical players. These include Sumitomo, Infineum, Chevron and Afton⁴ .

 

 

Specialty chemicals players, such as Evonik, contribute significantly to addressing the complex challenges of our time. As the world population grows from 7 billion people to a projected 9 billion in 2050,⁵ the world’s resources, and our ability to feed and fuel this growth, will increasingly come under strain.

 

Solutions that allow for greater resource productivity are therefore critical. Evonik’s methionine product is one such solution. The improvement on the quality of animal feed will help to enhance livestock and poultry nutrition, which, in turn, will allow us to supply more people with healthier food. 

 

Innovation is also key to developing solutions that address resource constraints. Evonik’s Tego R&D lab is a good example for developing such solutions. Established in Singapore last year, the lab centers its research on improving resource efficiency by providing solutions for environmentally friendly coatings.

 

Driving innovation is also what the Singapore government has invested heavily in. We have set aside S$16.1 billion for the period between 2011 and 2015 to encourage industry-relevant research, and to support private sector R&D. We aim to strengthen our research capabilities within the Agency for Science, Technology and Research, or A*STAR, within research institutes, as well as institutions of higher learning. They will become valuable partners for the chemicals industry in developing customised solutions to address major global trends from Singapore.

 

 

Beyond innovation, we envision Singapore to play a significant role for companies looking to tap on growth opportunities in the region, and to manage their Asian operations from here.

 

In recent years, our business partners have increasingly used Singapore as a strategic base to manage their pan-Asian businesses, develop Asian-centric innovation and harness regional talent. Undoubtedly, our strong talent pool, global connectivity and business-friendly policies have created a conducive environment for these companies to chart their regional and global growth from Singapore.

 

 

Our partnership with Evonik dates back to 2008, where it started its   inaugural manufacturing operations in Singapore with its first Asian Rohmax oil additives manufacturing plant. Evonik has since diversified its operations in Singapore to encompass a range of other activities, including a regional headquarters⁶ to manage its Southeast Asian businesses. When completed, both its methionine complex and polyamide-12 plant will form a flagship Evonik manufacturing campus on Jurong Island.

 

With this, I would like to extend my heartfelt congratulations to Dr Engel and the Evonik team for your confidence in Singapore. I look forward to many more years of fruitful partnership. Thank you.

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⁶ Southeast Asia, New Zealand & Australia