The investment is part of Afton’s “Made In” strategy that focuses on globally lean supply chain solutions that enable quicker support and more effective supply to its customers in Asia. It will also provide the additional infrastructure required to support the company’s long-term global growth plans.
The demand for GPA in Asia Pacific is expected to grow at a compound annual growth rate of 4% through 2024. “The additional GPA blending capacity in Singapore will help satisfy the increase in demand driven by the expected growth in China and other parts of Asia,” said Mr. Sean Spencer, Vice President and Managing Director of Afton Chemical Asia.
Afton has invested approximately S$400 million in the Singapore Chemical Additive Manufacturing Facility. The decision to continue Phase 3 investment is due to the integrated petrochemical hub in Singapore and trade connectivity to all parts of Asia and the Middle East. The Singapore government and Economic Development Board has been providing strong support to Afton from the start of its “Made In” investment in the region.
The new unit will help Afton and, in turn, our customers, by:
- Developing cost-effective and customized solutions for the region that will allow our customers a competitive edge in their markets
- Strengthening our ability to serve our customers worldwide and support their future growth
- Connecting our capacities globally to support regional and global business continuity, providing security of supply and shorter lead-times
The new blending unit will be operational by the fourth quarter of 2021 and designed to comply with Quality, Environmental and Occupational Health and Safety Assessment and all applicable regulations. This investment complements the blending and terminal operations in the Americas and Europe.
Afton is a global market leader in performance additive technology for fuels. Afton’s GPA solutions help fuels burn cleaner and more efficiently, enabling engines to perform as designed during their equipment lifetime on fuel economy, power and acceleration.
In Asia Pacific, Afton has established two fuel and lubricant additive Technology Centers in Suzhou, China and Tsukuba, Japan that provide Afton’s customers with enhanced technical services, including sample blending, physical and chemical analysis, and performance testing.
The continued investment in the manufacturing facilities and technology centers in the region underscores Afton’s commitment to providing increased customer support to the fast-growing GPA business in Asia Pacific.
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 production facilities, including single-sourced facilities; hazards common to chemical businesses; the ability to respond effectively to technological changes in our industry; failure to protect our intellectual property rights; sudden or sharp raw material price increases; competition from other manufacturers; current and future governmental regulations; the gain or loss of significant customers; failure to attract and retain a highly-qualified workforce; an information technology system failure or security breach; the occurrence or threat of extraordinary events, including natural disasters, terrorist attacks, and health-related epidemics such as the COVID-19 pandemic; risks related to operating outside of the United States; political, economic, and regulatory factors concerning our products; the impact of substantial indebtedness on our operational and financial flexibility; the impact of fluctuations in foreign exchange rates; resolution of environmental liabilities or legal proceedings; limitation of our insurance coverage; 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 the underperformance of our pension assets resulting in additional cash contributions to our pension plans; 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 2019 Annual Report on Form 10-K, which is available to shareholders upon request.
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