SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY (TRADE), AT THE CHEVRON ORONITE CARBOXYLATE PLANT OPENING CEREMONY AND 100TH ANNIVERSARY CELEBRATIONS, 2 NOV 2017, 6.55PM
Mr Desmond King, President, Chevron Oronite,
Mr Bruce Chinn, President (Designate), Chevron Oronite,
Distinguished guests,
Ladies and gentlemen,
Good Evening.
Introduction
1 I am happy to join you today at the opening ceremony of Chevron Oronite’s carboxylate plant. The expansion of this plant, which is the company’s largest manufacturing facility in the Asia-Pacific, marks another significant milestone in our growing partnership with Chevron Oronite. I would also like to congratulate Desmond, Bruce, and the team on the 100th year anniversary of your company.
Singapore remains an attractive location for high value chemicals manufacturing to meet growing demand in Asia
2 While global economic conditions may be uncertain, the Asia growth story remains a compelling one for companies. Urbanisation, increased demand for water, food security and the growing middle class are driving demand for sophisticated and cost-efficient chemicals in the region. Driven by these megatrends, Asia is projected to account for around 62% of the global chemical sales by 2035. In particular, we see fuel and lubricant additives as one of the growth areas, given the increasing demand for transportation to support the movement of goods and services.
3 Singapore has served as Chevron Oronite’s home in Asia since the company started manufacturing here in 1999. The expansion of this carboxylate plant, which will double the company’s global production capacity, is a timely one that will position Chevron Oronite to meet the growing demand for fuel and lubricant additives. I also understand that this is the company’s only plant in Asia to produce carboxylates for fuel additives, which attests to the attractiveness of Singapore as a location for high value chemicals manufacturing.
The Energy & Chemicals industry remains a key pillar of Singapore’s manufacturing sector
4 In line with the recommendations of the Committee on the Future Economy (CFE), we are committed to building a globally competitive manufacturing sector, contributing about 20% of our GDP over the medium term. The Energy & Chemicals (E&C) industry is an important pillar of our manufacturing sector – Jurong Island currently hosts over 100 global companies, with cumulative investments of over S$50 billion, and employ over 28,000 people.
5 We remain committed to position our E&C industry well for the future. To this end, we recently launched the Industry Transformation Map (ITM) for the E&C industry. The ITM, which was developed in close partnership with industry partners, unions, and trade associations, encompasses key strategies in innovation and productivity, as well as jobs and skills development. Through the efforts of the ITM, we aim for our E&C industry to achieve a manufacturing value-added of S$12.7 billion and create 1,400 new jobs by 2025.
Advanced manufacturing is an important thrust of our Industry Transformation Map for the Energy & Chemicals industry
6 As part of the ITM, the Singapore government will continue to support the adoption of advanced manufacturing technologies, such as automation, robotics and industrial internet-of-things, among our manufacturers. Advanced manufacturing technologies can provide a competitive edge for our manufacturers through significant improvements in productivity, and we are targeting for at least 20 E&C plants to adopt these technologies by 2020. Leading solution providers such as Accenture, Emerson, Yokogawa, and Siemens, have set up centres of excellence in Singapore to support our manufacturers in the development and adoption of advanced manufacturing solutions.
7 On this note, I am pleased to learn that Chevron Oronite has been one of our forerunners in adopting advanced manufacturing solutions. For instance, the company has embarked on its Smart Plant initiative in Singapore. This is a multi-year effort focused on upgrading field equipment and leveraging data analytics to drive energy efficiency, labour productivity and site safety.
8 The company has also installed Pervasive Sensing Infrastructure, which is a wireless smart platform to develop applications that improve plant operations and maintenance. Under the first phase of this project, Chevron Oronite has implemented personnel management solutions to boost safety and productivity, which are expected to save the company 30,000 man-hours each year on operations and maintenance.
Preparing our people to take on the job opportunities in the Energy & Chemicals industry
9 Under the ITM, we have also launched a Skills Framework for the E&C industry which covers six career tracks involving 53 job roles in the sector. The six career tracks are Production and Process Engineering; Health, Safety and Environment; Engineering and Maintenance; Quality Assurance and Quality Control; Technical Service, Application, and Product Development; and Research and Development. This framework provides valuable information on occupations and job roles, including the existing and emerging skillsets required for the industry, as well as career progression pathways.
10 Students who want to join the E&C industry can tap on the SkillsFuture Earn and Learn Programmes (ELP), a work-learn programme, for job roles such as process technicians and laboratory analysts. Mid-career workers interested to enter this industry can also take advantage of Professional Conversion Programmes (PCPs) to be reskilled and placed into suitable job roles.
Conclusion
11 Let me conclude by congratulating Desmond, Bruce and team on the opening of this plant and Chevron Oronite’s 100th year anniversary. The E&C industry is an important one for Singapore, and we look forward to many more years of successful partnership with Chevron Oronite. Thank y
ou.