Energy and chemicals sector to get productivity boost: Tharman

LEE YEN NEE Today Online 4 Nov 14;

SINGAPORE – The Government is working with Process Construction and Maintenance (PCM) players to improve productivity in this industry that supports the growth of the key energy and chemicals sector, Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam said today (Nov 4).

Speaking at the opening of a new plant by German specialty chemicals company Evonik, the minister said six work groups have been set up to develop “practical and doable steps to take productivity forward”.

“The PCM sector has grown in random with our chemicals industry, and has developed a strong track record in building and delivering world-class plants, suck as Evonik’s methionine facility - on cost and safely,” Mr Tharman said.

“But this is a continuing journey for PCM players. We will continue to have tight limits on the supply of both land and labour. The PCM sector, like the rest of the economy, will have to upgrade management practices, mechanism and redesign processes, and invest in workers’ skills.”

Among the initiatives that will be undertaken is the launch of an aggregated data sharing portal to reduce overlaps in project scheduling among companies, which will help to smooth demand for manpower and allow companies to better plan their projects.

There are also plans to cater land for a PCM dormitory near Jurong Island to reduce traveling time for workers to get to their work sites.

S$807m chemical production complex opens on Jurong Island
Dylan Loh Channel NewsAsia 4 Nov 14;

SINGAPORE: Specialty chemicals firm Evonik on Tuesday (Nov 4) opened its €500 million (S$807 million) production complex on Singapore's Jurong Island - the German company's largest investment in a single chemical project.

The company's first methionine plant in Asia will make the amino acid used as an ingredient in animal feed. The complex has an annual capacity of 150,000 metric tonnes, bringing Evonik's methionine production ability worldwide to 580,000 metric tonnes. It will also boost supply security for the firm's customers in Asia, due to strong consumption patterns for meat, eggs and milk in Asia.

Before the launch of the Singapore plant, methionine was typically shipped from the west, which took about two to three weeks.

GROWING SINGAPORE'S SPECIALTY CHEMICALS SECTOR

Asia accounts for 20 per cent of Evonik's sales, which totalled S$48.4 billion in 2013. As a major specialty chemicals player, it wants to raise its sales to 30 per cent by 2020 - a target which complements Singapore's plans for the industry.

"We are focused on growing our specialty chemicals sector," said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam, who officially opened the complex on Tuesday.

He added: "It is a sector that is going to do well, because Asia is transforming, and no matter how you look at this transformation in Asia, it involves almost invisibly, the use of specialty chemicals - the materials that are part and parcel of everyday living, particularly middle-class living."

JOBS FOR LOCALS

Two hundred jobs will be created for skilled workers at the new plant. Evonik Industries' chairman of the Executive Board, Klaus Engel, said that "80 to 90 per cent will be locals".

He noted: "We have started with more expatriates, and that is usual in such a project, but we will reduce the number of expats over time."

Singapore has attracted more than S$2 billion of fixed asset investments within the specialty chemicals sector in the past two years. Over this period, more than 1,000 skilled jobs were created, most of which were filled by Singaporeans.

BOOSTING THE PROCESS CONSTRUCTION AND MAINTENANCE SECTOR

Evonik said Singapore's business-friendly and stable environment, coupled with its excellent logistics infrastructure, were among the reasons why it chose to site the investment in the country.

The building of the Evonik plant is a boost to the Process Construction and Maintenance sector, which delivers infrastructure for energy and chemicals firms. The Process Construction and Maintenance sector has been collaborating with the Government to introduce initiatives to raise productivity, which include building a dormitory near Jurong Island to reduce travelling time for workers so that they can focus on productivity efforts.

A data sharing portal is also in the pipeline to reduce overlaps in project scheduling among companies.

- CNA/av/ek

Sembcorp opens new electricity and steam plant
Melissa Tan The Straits Times AsiaOne 5 Nov 14;
Sembcorp Industries opened a $635 million co-generation plant on Jurong Island on Friday, its second in Singapore.

The plant, which began operating at the start of last month, generates electricity for the national grid and produces steam for industrial companies on Jurong Island, Sembcorp said in a press release.

The company also opened a new technology and innovation centre near the plant, which it said was for Sembcorp researchers and engineers to develop and test new technologies.

Mr S. Iswaran, Minister in the Prime Minister's Office, said at the opening ceremony on Jurong Island that Sembcorp's new plant "will further boost the capacity and reliability of Singapore's power and steam supply".

"It is important for the public and private sectors to continue to work together to ensure that the energy sector keeps pace with our growing needs," said Mr Iswaran, who is also Second Minister for Home Affairs and Trade and Industry.

Mr Tang Kin Fei, group president and chief executive of Sembcorp, said at the ceremony that the plant, called Sembcorp Cogen @ Banyan, is a gas-fired co-generation plant that can supply 400MW of power and 200 tonnes per hour of process steam.

This facility increases Sembcorp's installed power capacity in Singapore by 50 per cent to 1,215MW, he added.

Mr Tang said the new technology and innovation centre would have a system that allows the firm to manage its energy and water facilities in 50 locations around the world from Singapore.

"It will put Sembcorp at the forefront of using predictive analytics in the operation of utility plants."

Mr Iswaran said that Sembcorp and the local energy market regulator would launch a $10 million partnership to encourage the commercialisation of energy research.

More details of Sembcorp's partnership with the Energy Market Authority will be released later, he said.

Sembcorp shares gained seven cents to close at $4.87 yesterday.