Orgkhim To Build Extender Oils Plant In Singapore


Russian industrial oils producer Orgkhim plans to build an extender process oils plant in Singapore or Malaysia, the company told Lube Report Asia on Monday.

The preferred location for the U.S. $50 million plant is on Jurong Island, Singapores energy and chemical industry hub. We claimed a land plot for construction there back in 2013. By the years end we expect to close negotiations and [to obtain] all the necessary authorizations and permits Nikolay Khodov, Orgkhims chief executive officer, said in a Sept. 23 news release. The company expects the project to receive government tax incentives, he added.

Expected to open by 2016, the 50,000 tons per year plant will sell the companys Norman-branded industrial oils in the Asia-Pacific region. We already supply a few Asian tire factories, and this plant will help us to significantly increase our presence on the market, the company said. As a backup location, we are considering the Port of Tanjung Pelepas, a new Malaysian industrial cluster located not far away from our companys office in Singapore, Khodov said. The Asia-Pacific region is of strategic importance for us, therefore we are determined to start construction in the shortest time.

Representatives of the Russian and Singaporean governments endorsed the project and the Jurong site during an intergovernmental meeting held in Singapore on Sept. 10. Russian First Deputy Prime Minister Igor Shuvalov and Singapores finance minister, Tharman Shanmugaratnam, attended the meeting.

The future plant will be the largest Russian investment and technological project to put our country on the spotlight not only as traditional energy supplier but as investor and provider of technologies and know-how, said Yuri Sentyurin, Russias deputy energy minister.

The new production facility will use a proprietary technology developed by the companys research and development center. A local affiliated research and development office will be opened at the plant site as well.

Orgkhim Biochemical Holding claims it is the worlds second-largest manufacturer of low-PAC (polycyclic aromatic hydrocarbons) extender oils. At its Uren plant in Nizhny Novgorod oblast, it makes 110,000 t/y of five types of naphthenic-based process oils used in rubber and rubber compounds. Orgkhim also produces emulsifiers, antioxidants and rosin resins for Russian manufacturers of synthetic rubber and tire industry.

Orgkhim also intends to expand in Europe and the United States. A process oils production unit in Poland is scheduled to come on line by 2016, and another such is planned to open in the U.S. by 2017, according to the company.

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