SingaporeM

arketSingapore – a promising market

- Singapore - a promising market ... p15

- Mainstreaming composites in the university system ...... p19

- The French supply chain for technical flax and hemp fibres gets organized ................... p26

- Biocomposites: double-digit growth per annum over the next 10 years ............. p28

No80 April 2013 / jec composites magazine 15

In the 48 years since gaining its independence in 1965, Singa-pore’s economy has grown consistently and is one of the sus-tained success stories of South East Asia. This has occurred in spite of Singapore being a small country, in terms of land area and a population of some 5 million, and not having any signifi-cant natural resources.

The Singapore government took advantage of two major assets of the country, namely its geographical

location and industrious population, and coupled that to a coherent set of economic and business policies that led to a close to 6% yearly average GDP growth rate from 1999 to 2011.

The Singapore economyThese key government policies were centred on being pro-business, being pro-foreign investment, being export-oriented and focusing state-directed investments in strategic government-owned corpora-tions. In addition, there has been a strong emphasis on building an advanced and efficient infrastructure and on turning Singapore into a centre for technology and innovation.The result of these policies is that the country has the highest ratio of trade to GDP (around 200%), higher even than Hong Kong; Singapore is also consistently

highly ranked in the regular BERI busi-ness environment survey as a place of high business potential and the best place to do business in the South East Asia region. GDP per capita in 2011 was in first posi-tion at around US$60,000 and was some five times higher than the next highest country in the region. Singapore has also established its reputation in holding the number one spot among countries in South East Asia and the world as a whole for lowest level of corruption (as measu-red by Transparency International). FDI rankings put Singapore, in spite of its relatively small size, as the place with the third highest number of FDI projects in the region after China and India.

Manufacturing in SingaporeIn 2011, manufacturing (including construction & utilities) accounted for some 26% of Singapore’s GDP, while ser-vices, at approximately 64%, made up the bulk of the remainder. Total manufactu-ring output grew some 4.6% in 2011 from S$ 260 billion in 2010 to S$ 272bln in 2011. Figure 1 shows that manufacturing is relatively concentrated with five sectors making up 87% of manufacturing output in 2011 (source: Singapore Government Statistics).

With the country’s target to be one of the top ten petrochemical sites in the world by 2020, the combination of two sectors,

ByAndrew Mafeld

Managing Director Connectra Global

Refined petroleum products and Chemicals and chemical products, has grown signifi-cantly in share of manufactu-ring output from 30% in 2010 to 34% in 2011, edging past the Computer, electronic and optical products sector, the previous leader, which in 2011 came in at 31% share of manu-facturing output. Three other manufacturing sectors are key to Singapore: Machinery & equipment (8% of 2011 output), Pharmaceu-ticals and biological products (also 8% of 2011 output) and “Other transportation equip-ment” (6% of 2011 output), leaving all the other fifteen sectors with a total 13% share of 2011 output.

The growing importance of petrochemicalsThe petrochemical industry in Singapore is focused on the islands of Jurong and Bukom. It is estimated that there is atotal investment of over S$30 billion from more than 90 companies operating on Jurong, where the two largest complexes are the Exxon Mobil complex and the Jurong Aromatics complex, currently under completion. On Bukom, Shell’s 500,000 barrels-per-day refinery is today the largest Shell refinery in the world

in terms of crude distillation capacity and the company also recently added a petrochemical complex on the island inclu-ding a world-scale ethylene cracker. The country’s ethylene production was just over 2 million tons in 2010 and this is expected to double by 2014 with all the current capacity ex-pansions underway. However, the focus of Singapore’s petro-chemical development is on higher value added products to avoid becoming too dependent on commodities. Enginee-ring thermoplastics such as polyamide and polycarbonate are examples of such products, which are then compounded with glass or carbon fibres and moulded into composite parts.

Maintenance, repair and overhaulThe aircraft maintenance, repair and overhaul (MRO)

industry in Singapore conti-nues to grow. The country has developed its aerospace industry to become one of the leading MRO centres in the world and is estimated to hold 25% of Asia’s business in this sector, which is expected to show 4-5% growth over the next ten years. Two of the global top 10 MRO players are located in Singapore, namely ST Aerospace and SIA Engineering. There are three clusters related to aerospace in the country, two near Changi International Airport (Changi North and Loyang) and the other at Seletar Aerospace Park. Leading global players in the MRO market are present in Singapore, including those who do composite repair such as Nordam and Goodrich. In 2007, Singapore’s Agency for Science, Technology and Research (A*STAR) launched its aerospace programme, which today is a consortium of eighteen companies such as Boeing, EADS, General Electric, Pratt & Whitney and Rolls Royce, including recent member Hexcel. The consortium’s goal is to foster synergies between industry members and the country’s research institutes, maximi-sing research outcomes and giving maximum value to

research spending. To date, the consortium has commissioned 37 projects, driving next-ge-neration technologies ranging from sophisticated in-flight entertainment systems, MRO innovations for faster turna-round times and alternative green energy sources that lower carbon footprint.

A thriving marine and offshore industrySingapore is a world leader in building oil and gas drilling/production units, offshore support vessels, floating pro-duction storage and offloading (FPSO) conversion, and is a top location in Asia Pacific for the manufacturing of oil and gas equipment. Approximately 70% of the jack-up rigs used for oil exploration and drilling in the world are produced in the country, which is host to two of the world’s biggest oil rig builders, Keppel and Sembcorp Marine, and home to over 200 well-established oil and gas services companies. In 2010, Singapore’s marine and offshore engineering industry output totalled S$16 billion, making it one of the fastest growing sectors in the economy and employing some 90,000 workers. Marine and offshore also represent signifi-cant opportunities for the use of composites.

Composite-related raw materials and equipmentSingapore imports most of its composite-related raw materials, namely on the reinforcement side all glass fibre (rovings/chopped strand mats, etc.) and glass-fibre fabrics, and all carbon fibre and carbon-fibre fabrics. There is one local unsatura-

Singapore

16 jec composites magazine / No80 April 2013

Fig. 2: Singapore’s aromatical complexe on Jurong island

Fig. 1: 2011 - Singapore’s manufacturing output by key sector Total : S$273 bn

posite parts produced in the country is based on thermoset production, the large majority being based on polyester and using open mould techniques or RTM. This volume would also include a small share of carbon- and glass-based pre-pregs, based mainly on epoxy. The relatively low volume of thermoplastic-based parts produced in Singapore, mainly by injection moulding for the electrical and electronics industries, implies that the large volume of thermoplastic compounds produced locally is for the most part exported, probably to China.

A growing hub for composites innovationAs indicated at the start of the article, the government has made it a priority to turn Singapore into a centre for technology and innovation. This is indeed taking place in the world of composites as lea-ding companies such as Vestas, Gamesa, DNV, Dyneema and Hexcel have recently either established technology centres or engaged in joint develop-ment activities in the country. The leading Singapore com-pany, ST, is funding research

ted polyester resin (UPR) producer, Singapore Highpo-lymer Chemical Products Pte Ltd., located on Jurong with a capacity of some 30 Kt/year. There are several producers of thermoplastics that are later compounded with glass or carbon fibre, namely polya-mide produced by Dupont on Jurong island, polycarbonate produced by Teijin, also on Jurong Island, with a 220Kt capacity, and several polypro-pylene producers including The Polyolefin Company (Sin-gapore) Pte. Ltd. (“TPC”), a consolidated subsidiary of Sumitomo Chemical Co., Ltd., with a 650Kt capacity of PP on Jurong. There are also several importers of typical compo-sites processing equipment such as, for example, filament winding machines and resin transfer moulding (RTM) machines.

Manufacture and trade of intermediate productsThe composites supply chain is a reflection of the country’s overall economy with signifi-cant imports of raw materials and significant exports of either intermediate products (prepregs and compounds)

into the use of natural fibres in composites and the aircraft manufacturer ATR, who have 250 small aircraft flying in the region, have set up their Asian training and MRO headquar-ters in Singapore.

Plenty of scope for future growth of compositesIn conclusion, Singapore’s vibrant economy with its strong manufacturing sector provides a solid base for the continued development of its composites industry. Growing composites usage in aircraft, construction, infrastructure, wind energy and offshore applications will provide good growth prospects particu-larly when coupled with the country’s focus on technology and innovation.

This article is based on a paper, with some data updated, presented by the author at JEC Asia in June 2012. The paper contains more details of the companies active in the Singa-pore composites market. n

More information: am@connectra.biz www.connectra.biz

or finished composite parts. Figure 3 presents an overview of the Singapore intermediate products manufacture.

The figure shows that, in terms of resin matrix type, it is estimated that only 10% of the volume of compounds and prepregs produced in Singa-pore in 2011 was based on thermoset resins. This would include mainly glass-and carbon-fibre-based prepregs as well as small quantities of Bulk Moulding Compounds (BMC). There is a signifi-cant production of carbon-fibre-based thermoplastic compounds, mainly with polycarbonate, making up an estimated 32% of the volume, while glass-fibre-based ther-moplastic compounds make up an estimated 58% of the volume in 2011.

Composite part mouldingIn contrast to intermediate products manufacture, thermoset matrices dominate within the manufacturing of composite parts in Singapore. Figure 4 gives an overview of the breakdown by resin ma-trix, showing that an estimated 91% of the volume of com-

No80 April 2013 / jec composites magazine 17

Fig. 3: 2011 estimated production in Singapore of Thermoset (TS) & Thermoplastic (TP) compounds & prepregs Total 31 Kt ( >80% exported)

Fig. 4: 2011 estimated production in Singapore of TS & TP - Finished Composite Parts Total : 32 Kt ( > 70% exported)