Afton Chemical Corporation has received approval from the NewMarket
Corporation board to begin construction of the new second phase of its
chemical additive manufacturing facility on Jurong Island, Singapore.
The construction of the first phase (previously announced in July, 2012)
is scheduled to be completed by year end 2015. The second phase, which
includes the construction of additional component production units will
more than double Afton’s investment in Jurong Island for a total of
approximately S$400 million. This new phase is scheduled to be completed
in 2017.
“Our Asia Pacific customers have unique sets of challenges that require
unique solutions. This investment will allow us to fulfill our vision of
making customized solutions for the region in the region,” said Rob
Shama, President, Afton Chemical. “This additional capacity in
combination with our new R&D center and expanding team makes it easier
to deliver our promise of giving our customers a competitive advantage
in their markets.”
Upon completion of this investment, Afton will own and operate regional
manufacturing in Suzhou, China and Jurong Island, Singapore. In
addition, Afton has technical centers in Tsukuba, Japan and Suzhou,
China and commercial offices in Tokyo, Japan; Beijing, China; Guangzhou,
China; Seoul, South Korea; Sydney, Australia; Bangkok, Thailand; and Ho
Chi Minh City, Vietnam. Afton maintains its regional headquarters in
Singapore.
“The Singapore location provides a great central location to serve the
broader ASEAN region with access to China and the Middle East for
customer supply,” said Gina Harm, Vice President, 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,”
she said
After the completion of these two phases, the plant will have full
capability to produce all of the engine oil additives we need for the
APAC region and will be scalable to allow Afton to grow as demand
warrants. Longer term, additional units, such as specialty dispersants,
may be added to produce other petroleum additive products in line with
market and our customer’s needs.
“Afton’s decision to construct a second phase of their new chemical
additive manufacturing facility in Singapore reinforces our value as a
strategic base for companies to chart their regional growth,” said Cindy
Koh, Director, Energy & Chemicals of the Singapore Economic Development
Board. “Asia’s industrialization and its booming demand for automotives
have made it the fastest-growing regional engine oil additives market in
the world, and we will continue to grow this market as a key vertical
within the higher value added specialty chemicals sector.”
About Afton Chemical
Afton Chemical Corporation is part of the NewMarket Corporation (NYSE:
NEU) family of companies. Afton uses its formulation, engineering and
marketing expertise to help their customers develop and market fuels and
lubricants that reduce emissions, improve fuel economy, extend equipment
life, improve operator satisfaction and lower the total cost of vehicle
and equipment operation. Afton develops and sells an extensive line of
unique additives for gasoline and distillate fuels, driveline fluids,
engine oils and industrial lubricants. Afton supports global operations
through regional headquarters located in Asia Pacific, EMEAI, Latin
America and North America. Afton Chemical Corporation is headquartered
in Richmond, Virginia. For more information, visit www.aftonchemical.com.
Cautionary Note Regarding Forward-Looking Statements:
Some of the information contained in this press release constitutes
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Although NewMarket’s management believes
its expectations are based on reasonable assumptions within the bounds
of its knowledge of its business and operations, there can be no
assurance that actual results will not differ materially from
expectations.
Factors that could cause actual results to differ materially from
expectations include, but are not limited to, availability of raw
materials and distribution systems; disruptions at manufacturing
facilities, including single-sourced facilities; ability to respond
effectively to technological changes in our industry; failure to protect
our intellectual property rights; failure to attract and retain a
highly-qualified workforce; hazards common to chemical businesses;
competition from other manufacturers; sudden or sharp raw material price
increases; gain or loss of significant customers; occurrence or threat
of extraordinary events including natural disasters and terrorist
attacks; risks related to operating outside of the United States; the
impact of fluctuations in foreign exchange rates; an information
technology system failure; political, economic, and regulatory factors
concerning our products; future governmental regulation; resolution of
environmental liabilities or legal proceedings; inability to complete
future acquisitions or successfully integrate future acquisitions into
our business and other factors detailed from time to time in the reports
that NewMarket files with the Securities and Exchange Commission,
including the risk factors in Item 1A, “Risk Factors” of our 2014 annual
report on Form 10-K, which is available to shareholders upon request.
You should keep in mind that any forward-looking statement made by
NewMarket in the foregoing discussion speaks only as of the date on
which such forward-looking statement is made. New risks and
uncertainties come up from time to time, and it is impossible for us to
predict these events or how they may affect the company. We have no duty
to, and do not intend to, update or revise the forward-looking
statements in this discussion after the date hereof, except as may be
required by law. In light of these risks and uncertainties, you should
keep in mind that the events described in any forward-looking statement
made in this discussion, or elsewhere, might not occur.
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