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Singapore: An inspiring city that is home to the $500-M BASF/Shell plant
Source: Manila Bulletin
Author: Lynda B. Valencia
Date: 2002-10-05
 
JURONG ISLAND, Singapore – Singapore is truly an inspiring city where east meets west, Asian heritage blends with modernity and sophistication happily co-exists with nature to create a uniquely harmonious ambience.







Here, one can discover unexpected and unique ways to have fun. Where else, for instance, can you enjoy a Broadway musical, shop for hot deals on air-conditioned streets, or walk through a rainforest in the heart of the city.





Or one can explore Night Safari on a tram or on foot like what the 31 delegates of the “BASF Asia Tour 2002” did. The walking trails display animals not seen along the tram route so it is recommended that one should use a tram and explore the trails for a truly unique experience.





Some of the animals that can be seen along the route are the Himalayan Tahr, Bharal, Vultures, Markhor, Flamingo, Otter, Marsh Birds, Wolf, Axis Deer, Barasingha, striped Hyena, Gir Lion, Giraffe, Blesbeok, Serval, Red Lechwe, Hippo, Hog Deer, Tiger, Tapir, Red Dhole, Asian Elephant, Banteng, Maned Wolf, Capybara, Giant Anteater, and others.





Singapore has a land area of 659.1 sq. kilometers and about 137-kilometer-north of the equator. Of this about 49.7 percent is used for residential/commercial purposes, 1.7 percent for agriculture and the rest consists of forest reserves and non-built-up areas.





But there is one island that is only devoted to industry – the Jurong Island. In 1982, an idea to combine seven southern islands into one island dedicated to chemicals was suggested. The exploration and coordinated efforts of various government agencies resulted in the formation of Jurong island.





Land reclamation works commenced in 1998 and when completed in 2003, Jurong Island will have 2,790 hectares of land at the cost of $7 billion in land reclamation.





The island’s development as a world-class chemical hub allows companies to derive synergy and economies of scale from being sited in one location. It is linked to the mainland by an eight-lane causeway.





For landscaping the island, the amount of S$2 billion was spent; IT master plan is being developed to link tenants on one e-business platform; has amenities centers (Oasis) which offers services like banking, clinics and restaurants to tenants on the island.





It has also a dedicated fire station to fight hazardous material emergencies (S$5.5 million) and trained fire-fighters on 24 hours standby, including a large flying water bucket hanging from a helicopter and a new Patriot II foam cannon.





Here at Jurong Island, the $500 million (S$892.5 million) Ellba Eastern plant, a 50-50 joint venture of the German chemical giant BASF and Shell was launched.





The plant, which came on stream in July 2002 and clocked over 15 million work-hours without lost time injury (LTI) has a capacity of 550,000 tons per year of styrene monomer (SM) and 250,000 tons per year of propylene oxide (PO).





Dr. Jurgen Hambrecht, Member of the Board of Directors, BASF said, by 2010 the company plans to achieve 20 percent of total sales in its chemicals business from Asia, with 70 percent of it derived from local production.





BASF will use the PO manufactured by Ellba Eastern to produce polyols for Asia. Polyols are building blocks for polyurethane. These polymers are used in the automotive industry, in refrigerators, sports equipment, upholstery, flooring, shoe soles, appliances, among others.





In spite of its size, the project was realized in a very short time – completed in just two-and-a-half years, seven weeks ahead of schedule, Hambrecht said, adding “the construction of the plant used 7,000 tons of steel – the same amount as in Eiffel Tower.”





“In the long term, the Asian market demand for polyurethane will be one third of the total global demand with annual growth rates expected to be significantly higher compared to other regions. We intend to expand our global capacities for polyurethane basic materials by concentrating on integrated world-scale plants at selected sites, like this one,” Hambrecht said.





He said the company is very much focused on integrated sites since “we are looking to extend our value-added chain, and concentrating on locations such as China, Malaysia, South Korea and Singapore.”





BASF’s lead project in China is a $2.9 billion 50-50 joint venture with Sinopec in Nanjing to build the largest ethylene cracker in the country.





George Yeo, Minister for Trade and Industry, who was the guest speaker highlighted the efforts to improve Jurong Island as a chemical hub. For example, a dedicated logistics hub at Banyan on the Island is being set up with its own berths, jetties and other marine facilities for handling, clearing and storage.





On the other hand, Evert Henkes, CEO of Shell Chemicals said “The company have a long standing and worldwide relationship with BASF and it is one we value highly.” (PNA)

 

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