By Yasmine Yahya, Channel NewsAsia | Posted: 29 June 2009 1749 hrs

LanXessLogo SINGAPORE: German chemicals firm Lanxess is postponing the construction of its new butyl rubber facility in Singapore because of the continuing global economic crisis.

The plant had originally been planned to come on stream in 2012, but the firm said production is now scheduled for 2014.

Lanxess said it would use the two-year delay to finish developing an innovative technology for butyl rubber production, which would then be used at the new facility.

Chairman Axel Heitmann said the new technology uses less resources and is considerably more energy-efficient and environmentally friendly than current processes.

From today's perspective, he said the capital expenditures for the new plant would be slightly lower than the original 400 million euros.

Regardless of the postponement, Lanxess said it would continue to expand its presence in Singapore.

The company is currently negotiating with the Economic Development Board with a view of managing its global butyl rubber business unit from Singapore in the future.

- CNA/so

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