SINGAPORE CHEMICALS SINGAPORE CHEMICALS 2018 SINGAPORE CHEMICALS 2018 Chemicals - Sustainability Production - Logistics - Distribution - Technology Dear Reader, We are delighted to be partnering Global Business Reports once nals Singapore’s long-term commitment to grow the industry in again for an in-depth feature of the energy and chemicals industry a competitive and sustainable manner. The ITM outlines a two in Singapore. pronged approach focused on innovation to ensure the long-term Since our last collaboration in 2016, we are operating in a different competitiveness and sustainable growth of the energy and chemi- environment. The Fourth Industrial Revolution is seeing innova- cals industry – firstly, to transform our existing base of chemicals tion and breakthroughs taking place at unprecedented speeds, with manufacturing through the adoption of innovative technologies the convergence of physical and digital worlds across industrial and secondly, to diversify into new growth markets and build inno- sectors disrupting many traditional ways of doing business. vation capabilities in applied research or novel platform strategies. This new global wave of industrialization presents Singapore with To aid our transformation efforts, we launched the Singapore a unique opportunity to build upon its strengths in technology and Smart Industry Readiness Index to help companies evaluate their innovation and cement its role in global manufacturing supply readiness for Industry 4.0 transformation. We have also anchored chains. the Asia Pacific chapter of Hannover Messe in Singapore, which For the energy and chemicals industry, it is important that we de- will take place this year from 16 to 18 October. By building a velop innovative solutions to enhance our competitiveness, espe- word-class advanced manufacturing ecosystem, we hope Singa- cially in the areas of resource efficiency and productivity. We have pore can help catalyze industrial transformation and enable com- started seeing new applications of technology on Jurong Island, panies to forge new partnerships and find new ways to grow their from the use of driverless trucks to transport goods, underwater business. drones for inspecting tanks, to RFID and wireless terminals for Having contributed S$82.8b to Singapore’s total manufacturing access control in facilities. The proliferation of sensors has also output in 20171, a 20 percent year-on-year increase, and account- provided businesses with more data, enabling them to further opti- ing for 28,000 workers, the energy and chemicals sector remains mize their manufacturing processes. a mainstay of Singapore’s economy. We hope that the report will While we have made a good start, we need to ensure we contin- provide you with a better understanding of the sector, and how ue building on this good foundation. The launch of the Energy Singapore can play an integral role in helping your business suc- & Chemicals Industry Transformation Map (ITM) in 2017 sig- ceed in Asia. Damian Chan, Cindy Koh, Executive Director, Energy & Chemicals, Director, Energy & Chemicals, Singapore Economic Singapore Economic Development Board (EDB) Development Board (EDB) 12017 preliminary estimates, Economic Survey of Singapore, Ministry of Trade & Industry. Policy Introducing Singapore’s Chemicals Environment Industry 8. Singapore's Chemicals Sector Once Again Redefining Itself 12. Interview with Singapore Economic Development Singapore Year of Climate Board Action and Water Security 14. Interview with Enterprise Singapore 15. Interview with McKinsey & Company 16. Interview with Singapore Chemical Industry Council (SCIC) 18. Jurong Island 22-35 Year of Climate Action 22. Sustainability Brings a New Lens to Industry 23. A Search for Regulatory Cohesiveness 24. Carbon Tax Set for 2019 25. Industry Perspectives on the Impending Carbon Tax 26. Interview with Neste Singapore 28. Interviews with Together for Sustainability and with Buckman Asia Pacific Producers 29. Interview with Golder 30. Interview with Novacap Group (Mineral Specialities Division) 31. Interview with Huntsman 32. For a Rainy Day: Targeting Water Self-Sufficiency Specialty Chemicals, Paints 35. Interview with Veolia Water Technologies and Coatings, Life Sciences, Textiles, Mobility, and Manufacturing Petrochemicals 38. Singapore’s Chemical Producers: Feeding Asia’s SINGAPORE CHEMICALS 2018 CHEMICALS SINGAPORE OF CONTENTS TABLE Appetite 39. Specialty Chemicals 38-57 Sungai Distribution MALAYSIA Johor and Trade Getting from producer to Serangoon Harbour market Singapore Changi International Airport 78-91 Singapore N Selat Johor Industry 4.0 Solution Selat Pedan Sebarok Channel Singapore Next wave technological Strait solutions across chemicals supply chain 0 5 10 Kilometers 94-105 40. Expert Opinion Article by Institute of 70. Interview with Yang Kee Logistics Service Providers Chemical and Engineering Sciences (ICES) 72. Interview with Suttons Group 42. Interviews with Evonik and with Sumitomo 73. Interview with Out of the Box Logistics 108. Service Providers are Still Struggling Chemical Asia 74. Interviews with Singapore LNG Corporation 109. Interview with Mammoet 43. Paints and Coatings and with TankBank International 110. Interview with Association of Process 44. Interview with AkzoNobel Paints 75. Interview with BDP International Industry (ASPRI) 45. Interview with Dow Chemical 111. Interviews with HSL Constructor and with 46. Interview with Lanxess Distribution and Trade Surbana Jurong 47. Interviews with Arkema and with Celanese 112. Interviews with Wood and with Mun Siong 48. Life Sciences 78. Distribution: Streamlining the Channels Engineering 49. Interview with DSM Nutritional Products, 81. Interview with Jebsen & Jessen Ingredients 114. Interview with Brunel Asia Pacific 83. Interview with Brenntag 115. Interview with Spencer Stuart 50. Interview with Corbion 84. Interview with Vistachem 51. Interview with Lubrizol Southeast Asia 85. Interview with Unilite Chemicals 116: Company Index 52. Interviews with Croda and with Henkel 86. Interview with Behn Meyer 118. Credits Singapore 87. Trade: Looking to the Long Haul 53. Mobility and Interview with ARLANXEO 89. Interview with Integra 54. Interview with Afton Chemical Asia 91. Interview with BritCham Energy & Utilities 55. Textile Chemicals Group and with Singaporean-German 56. Petrochemicals Chamber of Industry and Commerce (SGC) 58. Across the Johor Strait: Malaysia's Potential Industry 4.0 Solution Providers 59. Interview with Braskem 61. Interview with Mitsui Chemicals Asia Pacific 94. Singapore’s Industry 4.0: an Evolution or 62. Interview with ExxonMobil Asia Pacific Revolution? 63. Interviews with Shell Jurong Island and with 098. Interview with TÜV SÜD Asia Pacific Nylex (Malaysia) Berhad 099. Interviews with Emerson and with 64. Interview with Lotte Chemical Titan Yokogawa Engineering Asia SINGAPORE CHEMICALS 2018 Industry Explorations 100. Interview with Prüftechnik Global Business Reports Logistics 101. Interview with Endress+Hauser, Singapore This research has been conducted by 102. Interview with Siemens Irina Negoita, Julian Issa, 68. By Land, Sea and Air: Asia-Pacific’s Forward- 103. Interview with Accenture Sarah Crompton-Donnelly and Thinking Logistics Hub 104. Interview with SICK Product Center Asia Emma Johannes Edited by John Bowlus 69. Interview with Bertschi Singapore 105. Interview with Schneider Electric Graphic design by Gonzalo Da Cunha Sungai MALAYSIA Johor Serangoon Harbour Singapore Changi International Airport Singapore N Selat Johor Selat Pedan Sebarok Channel Singapore Strait 0 5 10 Kilometers GBR • Industry Explorations • SINGAPORE CHEMICALS 2018 Image courtesy of ExxonMobil Introducing Singapore's Chemicals Industry “We now have over 100 Energy and Chemicals companies on Jurong Island. That in itself provides Singapore with competitive advantage over other chemical hubs in the region, which are generally dominated by individual companies. For businesses looking to operate in Singapore, the opportunity to source for feedstock and then sell their products, over the fence, is immense.” - Damian Chan, Executive Director, EDB EDITORIAL Global Business Reports Singapore's Chemicals Sector Once Again Redefining Itself “ 8 Singapore continues to redefine itself 53 corruption and crime and allowing com- Singapore’s Smart Nation initiative years on since independence. From the munities to thrive harmoniously. Adopting sets the right framework for city-state’s humble beginnings, it emerged a free trade policy in the 1960s where few the early adoption of innovative as one of the four Asian tigers before con- others in the region did, he set the tone for technologies. We always position solidating its position as a global logistics large multinational corporations (MNCs) and business hub. With an area spanning to come. Singapore’s strategic location at ourselves in regions where these only 721.5km2, less than half the size of the southern tip of the Malay Peninsula, new technologies are deployed London, and with no natural resources of well positioned to take advantage of mar- to develop our services as close its own, Singapore’s rise was no easy feat. kets in the Indian and Pacific Oceans, and to partners and customers as In fact, the country’s founding father Lee its natural deep-water ports made it an possible. Our decision has been Kuan Yew believed, in 1965, that a merger ideal global trading and shipping hub. By vindicated over the last three with Malaysia was essential to its survival. the end of 2017, there