March 5 ExxonMobil Chemical said it will build facilities to make premium halobutyl rubber and Escorez hydrogenated hydrocarbon resin at its recently expanded petrochemical complex in Singapore.
Engineering and procurement activities have begun, with construction expected to begin in the second half of 2014 and completion anticipated in 2017, the company said.
ExxonMobil supplies halobutyl rubber to the global tire industry. This expansion project will add production capacity of 140,000 tons per year.
"We continue to invest in expanding capacity at our strategic hub in Singapore, which is an ideal location to efficiently serve the fast growing Asia Pacific market," said Steve Pryor, president of ExxonMobil Chemical.
Hydrogenated tackifier demand is expected to double over the next 15 years. Much of the growth is anticipated in Asia, where packaging, woodworking and nonwovens manufacturers increasingly use hot melt adhesives, the company said.
The number of cars and light trucks globally is expected to double to 1.7 billion vehicles by 2040, supporting much of the growth expected for halobutyl rubber, according to ExxonMobil's energy outlook.