SINGAPORE--(BUSINESS WIRE)--Afton Chemical Corporation, a global leader in the lubricant and fuel additive market, today announced the completion of the Phase II expansion of its Chemical Additive Manufacturing Facility in Jurong Island, Singapore. This milestone was marked by a special visit from Singapore’s Minister for Trade & Industry Mr. Chan Chun Sing, who also made a speech and toured the facility.
As a wholly owned subsidiary of NewMarket Corporation (NYSE: NEU), Afton has been a leading player in the lubricant and fuel additive marketplace for over 90 years. The company was founded on a Passion for Solutions® and has maintained a focus on customizing commercial and industrial solutions that meet customer needs.
Afton begun its Singapore manufacturing operations in May 2016, when it announced the Phase I opening of its Jurong Island plant. Phase II’s investment of S$222 million is more than Phase I’s initial investment of S$158 million, bringing the total investment in Singapore to S$380 million.
“This facility was key to Afton’s plans to ensure that our products are ‘Made in Asia for Asia’. Our Jurong Island plant now has the full capability to produce core engine oil additives that we need for the Asia Pacific region,” commented Gina Harm, Afton Chemical’s President. “We are also proud to say that we are investing in advanced technologies that will contribute towards longer term goals of reducing carbon emissions,” said Harm.
Phase II’s expansion kickstarts production of advanced ashless dispersants and anti-wear components. All are critical components in several of Afton’s products, and will help passenger vehicles and commercial vehicles meet performance standards of the future. The latest expansion also enhances the support network in Asia Pacific, which already has established R&D innovation centers in Suzhou, China and Tsukuba, Japan.
“We continue to invest in Singapore because we see it as the central hub of the region. It has a strong record of safety, security and integration – conditions we value. Furthermore, there is a strong talent pool and retention is very positive. From a manufacturing perspective, Singapore is the perfect place to distribute not only to ASEAN but also China. For the three major demand clusters in China, it only takes 20 days to deliver to and from Singapore,” added Sean Spencer, Afton Chemical Asia’s Vice President. “Essentially, we are improving customer satisfaction with shorter lead times and enhanced security of supply.”
This expansion will increase Afton’s workforce in Singapore by 123%. The facility will house state-of-the-art equipment and will be the first plant in the Afton family to offer integrated management systems and automated full traceability. It will occupy approximately 45,500sqm in land area and will continue production of key components used in engine oil additive packages such as ZDDP Antiwear, Ashless Dispersants and Sulfonate Detergents.
“Asia’s rapid urbanisation and growth is driving the demand for transportation fuel and specialty chemical products. Afton’s Phase II expansion is testament to the attractiveness of Singapore as a hub to capture growing opportunities in the region, and the ability of our workforce to undertake high value-added manufacturing,” said Ms Cindy Koh, Director, Energy & Chemicals, Singapore Economic Development Board. “We look forward to partnering with Afton Chemical in their growth plans for Asia.”
About Afton Chemical Corporation:
Afton Chemical Corporation is part of the NewMarket Corporation (NYSE: NEU) family of companies. Afton Chemical Corporation 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 Chemical Corporation develops and sells an extensive line of unique additives for gasoline and distillate fuels, driveline fluids, engine oils and industrial lubricants. Afton Chemical Corporation 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, the availability of raw materials and distribution systems; disruptions at manufacturing facilities, including single-sourced facilities; the 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; the gain or loss of significant customers; the 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 or security breach; political, economic, and regulatory factors concerning our products; current and future governmental regulations; resolution of environmental liabilities or legal proceedings; our inability to realize expected benefits from investment in our infrastructure or from recent or future acquisitions, or our inability to successfully integrate recent or 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 2017 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 arise 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.