Afton Chemical announces new investment in Singapore additive plant
Afton Chemical Corporation, a global leader in the lubricant and fuel additive market, has received approval from the Afton Chemical board to invest in gasoline performance additives (GPA) blending capabilities at its Singapore Chemical Additive Manufacturing Facility.
The investment is part of Afton’s “Made In” strategy that focuses on globally lean supply chain solutions that enable quicker support and more effective supply to its customers in Asia. It will also provide the additional infrastructure required to support the company’s long-term global growth plans.
Demand for gasoline performance additives in Asia Pacific is expected to grow at a compound annual growth rate (CAGR) of 4% through 2024. “The additional GPA blending capacity in Singapore will help satisfy the increase in demand driven by the expected growth in China and other parts of Asia,” said Sean Spencer, vice president and managing director of Afton Chemical Asia.
Afton has invested approximately SGD400 million (USD292 million) in the Singapore Chemical Additive Manufacturing Facility. The decision to continue with Phase 3 investment is due to the integrated petrochemical hub in Singapore and trade connectivity to all parts of Asia and the Middle East. The Singapore government and the Economic Development Board has been providing strong support to Afton from the start of its “Made In” investment in the region.
The new unit will help Afton Chemical:
- Develop cost-effective and custom solutions for the region
- Strengthen its ability to serve customers worldwide and support their future growth
- Connect its capacities globally to support regional and global business continuity, providing security of supply and shorter lead-times
The new blending unit will be operational by the fourth quarter of 2021 and is designed to comply with Quality, Environmental and Occupational Health and Safety Assessment and all applicable regulations. This investment complements Afton Chemical’s blending and terminal operations in the Americas and Europe.
Afton Chemical, which is part of NewMarket Corporation, based in Richmond, Virginia, U.S.A., is a global market leader in performance additive technology for fuels. Afton’s GPA solutions help fuels burn cleaner and more efficiently, enabling engines to perform as designed during their equipment lifetime on fuel economy, power and acceleration.