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Chevron Oronite completes Singapore expansion

The American-based fuel and lubricant additives firm says the expansion of its Jurong Island facility will help it to meet the growing demands of an increasingly affluent Asia.

SINGAPORE: Singapore's lubricants sector is moving up the value chain, as large global firms upgrade their operations here.

On Tuesday (July 15), American-based fuel and lubricant additives firm Chevron Oronite announced the completion of a major expansion of its Singapore plant, which it hopes will enable it to better serve the region's growing demands.

Chevron Oronite's plant in Singapore is the largest additives manufacturing facility in the region. Additives produced here are used to improve the performance of lubricants in various applications, including engines in cars and marine vessels.

Continuous additions to the Jurong Island facility have led to a doubling in production capacity since it first opened in 1999. Upgrades include increased production and storage capability, and more efficient product sampling and delivery.

Oronite says it is expanding to meet the growing demands of an increasingly affluent Asia. "Ownership of cars is becoming more popular, so people demand more high-quality additives and lubricants to protect their engines. The amount of additives put into lubricants to protect their engines are also at a higher percentage than before," said Mr Jirong Xiao, Vice-President of Sales & Marketing for Chevron Oronite. "Both of these (factors) contribute to the significant increase (in demand). We continue to be the leader in this area to capture the growth, to serve our customer more efficiently, with the highest quality."

Minister for Trade and Industry Lim Hng Kiang says the expansion signals Oronite's confidence in Singapore as a base for its operations, adding that the Government will continue to grow the lubricants additives segment as a key component of the specialty chemicals sector.

Over the past two years, he noted, companies in the lubricant additives segment have invested more than S$400 million dollars in Singapore. "We are also enhancing our position in the broader lubricants value chain," he said. "We are working with industry partners as they move towards refinery upgrades which will facilitate the production of higher quality base oils to meet the growing global demand for premium lubricants."

Looking ahead, the upcoming Singapore Lubricants Park is scheduled for completion next year. It is expected to bring international firms like Shell, Sinopec and Total together to produce higher value products.

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