Speciality chemical plant expansion allows for more customisation: Croda

Singapore

BRITISH speciality chemicals manufacturer Croda International has completed an £18 million (S$38 million) expansion of its Jurong Island plant that not only more than doubles its production capacity, but also expands its product range to allow for greater customisation.

The investment - Croda's largest in Singapore so far - marks the beginning of a number of investments that the firm is planning to make in the Republic as well, it said.

With the expansion, the plant's annual production capacity grows from 12,000 tonnes to 30,000 tonnes, which enables Croda to service the fast-growing markets in the region, said regional sales director of personal care Murali Duvvuri.

The facility manufactures high grade alkoxylates - believed to be the only one in Asia that can do so - for products that are eventually used in sectors such as personal care and life sciences.

The plant expansion also helps Croda reduce the time its products need to get to the market, Mr Murali added. "What makes this region unique is the high expectations of its consumers in terms of wanting new solutions and seeking out new experiences all the time," he said. "What that translates to . . . is the need for a higher speed to market in terms of innovation and product delivery."

It was a point reinforced by EDB's energy and chemicals director Cindy Koh. "The needs of the Asian market are vastly different from others, and its expanding middle-class will drive demand for increasingly sophisticated solutions," she said.

For example, in the personal care industry, the ability to seize market opportunities will depend on companies' capability to develop customised products. Said Ms Koh: "Factors such as social norms, cultural diversity and economic status of a particular region shape shoppers' preferences."

The investment by Croda is a testament to Singapore's continued attractiveness as a location for manufacturing high value-added speciality chemicals, she added.

The speciality chemical sector is one that Singapore has identified as the next growth area for its large petrochemical sector and is actively courting.

Croda said that the plant expansion would create an additional 12 to 15 jobs as most operations are automated.

The firm set up its first sales office in Singapore in 1985, and five years later started manufacturing operations with esters as its first product. In 1999, it started up its first integrated alkoxylation plant in Asia on Jurong Island.

Last year, it opened a Collaboration & Training Centre, which includes laboratories, a hair and skin salon, and a training centre, to support customer needs in the region.

Speaking at the opening of the expanded facility on Tuesday, president for Asia-Pacific Nick Challoner said: "This new facility represents a key part of Croda's strategy to grow in emerging markets through ongoing investment in people, technology and assets, and we are eager to continue to invest in Singapore."