News • 11:00 a.m. SGT
ExxonMobil to acquire one of worlds largest aromatics plants
SINGAPORE — ExxonMobil Asia Pacific Pte Ltd has reached an agreement to acquire the assets of Jurong Aromatics Corporation Pte Ltd (JAC) on Jurong Island in Singapore.
News • 11:00 a.m. SGT
- Agreement signed for the Jurong Aromatics Corporation plant in Singapore
- Plant will enable cost-competitive growth of ExxonMobil’s strategic aromatics business
- Proximity to company’s integrated refining and petrochemical complex will strengthen both sites with product and logistical synergies
The plant, one of the largest in the world with an annual production capacity of 1.4 million tonnes, presents operational and logistical synergies for ExxonMobil’s integrated refining and petrochemical complex nearby.
“Integration of this aromatics plant with ExxonMobil’s existing manufacturing facility will provide product and logistical synergies that will enable our continued growth and competitiveness,” said Gan Seow Kee, chairman and managing director of ExxonMobil Asia Pacific Pte Ltd. “Our decision to acquire the facility is also indicative of the advantages Jurong Island provides for the petrochemical and refining industry, as well as Singapore’s importance in global trade and economic progress.”
Singapore is home to ExxonMobil’s largest integrated refining and petrochemical complex, which has a crude oil processing capacity of 592,000 barrels per day and includes two world-scale steam crackers. Acquisition of the Jurong aromatics plant will increase ExxonMobil’s Singapore aromatics production to over 3.5 million tonnes per year, of which 1.8 million tonnes is paraxylene.
“As a leading global manufacturer of aromatics, the addition of this plant to our existing operations in Singapore will help us better serve our customers in key Asian growth markets,” said Matthew Aguiar, senior vice president of basic chemicals, intermediates and synthetics for ExxonMobil Chemical Company. “We continue to make strategic investments that will ensure ExxonMobil is well positioned to meet increasing global demand for chemical products.”
ExxonMobil expects to complete the transaction in the second half of 2017 and is working to offer employment to qualified employees from JAC. “We have been working closely with the receivers and managers of JAC to keep employees informed about the transaction. Their knowledge and expertise will help ensure the safe and reliable operations of the plant,” Gan said.
ExxonMobil has operated in Singapore for more than 120 years and is one of the country’s largest international manufacturing investors. Singapore’s integrated petrochemical complex can process a wide range of feedstocks, from light gases to crude oil. Later this year, the complex will begin the phased start-up of new 230,000 tonne-per-year specialty polymers facilities that will produce halobutyl rubber and performance resins for adhesive applications.
The company’s growth in Singapore is driven by the expected increase in global demand for chemical products over the next decade of nearly 45 percent, or about 4 percent per year, which is a faster pace than energy demand and economic growth. Nearly three-quarters of the increased demand is expected to be in Asia Pacific as a result of its rising prosperity and a growing middle class.
About ExxonMobil Chemical Company
ExxonMobil Chemical Company is one of the largest petrochemical companies worldwide. The company holds leadership positions in some of the largest-volume and highest-growth commodity petrochemical products in the world. ExxonMobil Chemical Company has manufacturing capacity in every major region of the world, serving large and growing markets. More than 90 percent of the Company’s chemical capacity is integrated with large refineries or natural gas processing plants. To learn more, visit www.exxonmobilchemical.com.
About ExxonMobil in Singapore
ExxonMobil is one of Singapore’s largest foreign manufacturing investors with over S$20 billion in fixed assets investments. Our Singapore affiliate, ExxonMobil Asia Pacific Pte Ltd, (EMAPPL) has manufacturing facilities which include refinery operations in Jurong and a world-scale petrochemical plant on Jurong Island. EMAPPL has a network of service stations under the Esso brand and is a supplier of cylinder cooking gas. EMAPPL also serves the commercial market with its industrial, aviation and marine fuels and lubricants. As a corporation, ExxonMobil is committed to addressing the challenge of sustainability – balancing economic growth, social development and environmental protection. In line with those strategies, ExxonMobil and EMAPPL contribute to programs in Singapore that support the arts and education, the community and the environment. For more information, visit www.exxonmobil.com.sg or follow us on Twitter www.twitter.com/exxonmobil_sg.