S'pore sets into motion big petrochemical venture<\/p>\n
SINGAPORE (AFP): Singapore launched a S$3.4 billion (US$2.26
\nbillion) joint venture on Monday to produce high-value
\npetrochemicals, capitalizing on rising demand in Asia, officials
\nsaid.<\/p>\n
The officials said that the complex on nearby Ayer Merbau
\nisland is Singapore's second and involves construction of energy-
\nefficient plants by Japanese, European and U.S. multinationals.<\/p>\n
The project will be the largest single integrated
\nmanufacturing facility in Singapore when combined with a maiden
\ncomplex built at a cost of $2 billion 10 years ago.<\/p>\n
"This second complex is a strategic project for Singapore --
\nit heralds a new phase of development for our petrochemical
\nindustry," Trade and Industry Minister Yeo Cheow Tong said at the
\nproject's groundbreaking ceremony.<\/p>\n
Yeo said that the second complex was well timed to take
\nadvantage of the current upturn in the petrochemical industry
\nafter a period of sluggish demand.<\/p>\n
The project, he said, was strategically located within the
\nAsia-Pacific region, which was set to see a rise in share of
\nworldwide chemicals demand by 10 percent to 40 percent by 2000.<\/p>\n
Japanese<\/p>\n
The project is spearheaded by the Petrochemical Corp. of
\nSingapore Pte. Ltd. (PCS), a 50\/50 joint venture between a
\nJapanese consortium led by Sumitomo Chemical Co. Ltd. and the
\nNetherlands' Shell Overseas Investments BV.<\/p>\n
The other four companies involved are The Polyolefin Co. (S)
\nPte. Ltd. (TPC), Philips Petroleum Singapore Chemicals Pte. Ltd.
\n(PPSC), Denka Singapore Ptd. Ltd. (DSPL) and Jurong Island
\nIndustries Gas Pte. Ltd. (JIIG).<\/p>\n
TPC is a 70\/30 joint venture between another Japanese
\nconsortium also led by Sumitomo Chemical and Shell Overseas
\nInvestment while PPSC is a 50\/30\/20 joint venture between
\nPhillips Petroleum International Corp. of the United States,
\nSingapore state-run Economic Development Board Investments Pte.
\nLtd. and Sumitomo Chemical.<\/p>\n
DSPL is fully-owned by Japan's Denki Kagaku Kogya K.K., while
\nJIIG is a venture involving a Japanese, Dutch, British and French
\ninvestments.<\/p>\n
All the multinationals have stakes in Singapore's first
\npetrochemical complex on the same island.<\/p>\n
The complex, which will come on stream by the second quarter
\nof 1997, incorporates a huge chemical plant under construction on
\na neighboring islet, run as a 70\/30 joint venture between Shell
\nand Japan's Mitsubishi Chemical Corp., officials said.<\/p>\n
The project would mostly be funded by a mix of borrowings and
\nequity from cash generated by the ongoing operations of plants
\nforming part of the maiden complex or direct shareholders' funds,
\nthey said.<\/p>\n
Under the project, the PCS will build a second naphtha cracker
\nto manufacture products such as ethylene and propylene and
\nbyproducts such as acetylene.<\/p>\n
"The expansion will consolidate our position as leading
\nmanufacturer of petrochemical products in the Asia Pacific-region
\nincluding the production of some one million tons of ethylene
\nafter 1997," said T. Okada, PCS's managing director.<\/p>",
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