RICHMOND, Va - Wednesday, August 19th 2015 [ME NewsWire]
(BUSINESS WIRE)-- 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.
Afton Chemical Corporation
Marketing Communications Manager