Evonik opens first Asia speciality chemical alkoxide plant in S’pore


German company Evonik’s new production plant for specialty chemicals alkoxides – its first in Asia – opened on Jurong Island on Aug 27. — Photo: Evonik

SINGAPORE: The German chemicals company Evonik has opened an alkoxide production facility on Jurong Island that will pave the way for more sustainable chemical manufacturing facilities in the region.

The US$60mil plant – the company’s fourth in the world and first in Asia – adds to its production network alongside facilities in the United States, Germany and Argentina.

Alkoxides, also known as sodium methylate, are chemical compounds that are primarily used as catalysts in biodiesel production using vegetable oils. They are also important components in the pharmaceutical and agricultural industries.

The Singapore plant, which opened on Aug 27, will focus on production for Asean markets, with Indonesia and Malaysia the major biodiesel producers.

While its other alkoxide plants require a combination of steam and electricity to operate, Evonik’s Singapore facility will be the first to operate entirely on electricity.

This means that the plant would be able to run on green energy in the future, allowing it to operate with net-zero scope one and two carbon emissions as defined by the greenhouse gas protocol.

The company also expects the alkoxide plant to play a bigger role in the chemical recycling of PET plastics.

Lauren Kjeldsen, Evonik’s chief operating officer of custom solutions, said on Aug 27: “This facility is more than just an expansion; it’s a statement of our long-term commitment to Asia. By producing closer to our customers, we enhance supply security and agility, while also contributing to Singapore’s vision for a sustainable chemical industry.”

The company has two other plants on Jurong Island and two more in Tuas.

Evonik regional president Claus Rettig told The Straits Times that even though most of the region’s demand for alkoxides comes from neighbouring countries, the company still deemed Singapore the most ideal location for the new plant.

He cited the ecosystem that Evonik has already established in the country as a major factor, bolstered by the strong political and economic stability.

“Singapore also has better shipping access to Malaysia and Indonesia. It would be more expensive to ship from Indonesia to the country’s different island than to ship it from here,” he said.

He added that the plant would significantly reduce South-East Asia’s reliance on China and Saudi Arabia for alkoxide imports.

Rettig noted that Singapore offers an “unbeatable” proposition with its highly skilled workforce – the plant is manned by a team of just 13 people in a separate control room, working three shifts a day. — The Straits Times/ANN

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