Afton to Expand Singapore Plant


Afton Chemical Corp. announced last week that it will expand its new lubricant additives plant in Singapore, increasing its investment in the facility to about SG $400 million (U.S. $284 million). The company previously said that the first phase of the plant cost SG $100 million.

The American company received approval from parent NewMarket Corp. to begin a second phase of construction on its new additives plant, which is set to commence operations later this year and begin sales of detergents next year.

The expansion will include additional component production units for dispersants and zinc dithiophosphate (ZDDP) antiwear agents. The second phase is scheduled for completion in 2017.

Upon completion of these two phases, the plant will have full capability to produce all of the engine oil additives we need for the Asia-Pacific region and will be scalable to allow Afton to grow as demand warrants, said Afton President Rob Shama in a statement last week. Longer term, additional units, such as specialty dispersants, may be added to produce other petroleum additive products.

Our Asia-Pacific customers have unique sets of challenges that require unique solutions, Shama continued. This investment will allow us to fulfill our vision of making customized solutions for the region in the region.

Singapore provides a great central location to serve the broader Association of Southeast Asian Nations region with access to China and the Middle East for customer supply, explained Gina Harm, vice president of supply.

This is a significant investment, which is a key component of our long range plan to improve our business continuity plan and security of supply for all of our customers, particularly our global and multinational customers.

Afton Chemical also has a manufacturing facility in Suzhou, China, a technical center in Tsukuba, Japan, and commercial offices in Tokyo, Japan; Beijing and Guangzhou in China; Seoul, South Korea; Sydney, Australia; Bangkok, Thailand and Ho Chi Minh City, Vietnam. Its regional base is in Singapore.

Headquartered in Richmond, Virginia, Afton Chemical is a wholly-owned subsidiary of NewMarket Corp. It develops and markets additives for gasoline and distillate fuels, driveline fluids, engine oils and industrial lubricants.