Proposal for Development of Petrol Chemical Plant on Jurong Island

Capital stimulus for construction and victuals of a petro chemic plant is high because of the large amounts of electricity and water id postulate to heat up unsanded materials used in the petrochemical diligence from which hydrocarbons ar extracted. The main raw materials would be naphtha and kerosene, which atomic number 18 obtained from oil refineries. A extremely skill labour force is required to run the advance machinery. touchesIn the plant, crackers atomic number 18 used to break up large hydrocarbons in refined oil products like naphtha and gasoline. In the cracker, hydrocarbons modify by steam pass over the hot catalyst powered alumina-silica gel. The catalyst give ups a gigantic surface on which the hydrocarbons break up into smaller more useful hydrocarbons. After crackling, the compounds are illogical by fractionation. Some of these compounds are joined with an other(prenominal) chemicals.OutputsProcessed basic petrochemicals such as ethylene, propylene, but adiene, benzene, isoprene, and xylenes, which are the build blocks for innumerable chemical products spanning the range of the plastic, rubber, and synthetic fiber industries.In turnation or so suitable localization principleThe proposed location, Jurong Island, formed by land reclamation to merge seven offshore islands off the southern glide of Singapore (figure1), is a highly integrated world-class petrochemical complex. Their arrive is home to leading petrochemical companies like Chevron, Sumitomo and Mobil. take care 1Location of Jurong Island Figure 2Map of Jurong Islandd1Central to the industry cluster concept and festering of Jurong Island as an integrated complex is the sharing of everyday facilities. These include marine facilities, such as jetties and other berthing facilities services such as warehousing, hazardous treatment, exhaust fighting, medical and emergency response a common service corridor and stem such as roadstead and drains.Connected to mainland Sin gapore by 2.6 kilometre causeway, Jurong Island is only a ten minutes journey form furthest part of Jurong Island to the mainland. on that point are also bus services plying the entire island.emailprotected, which is the amenity sum found on the island itself as the community and transportation hub for Jurong Island customers. The amenity centre houses facilities like an air-conditioned forage court, an alfresco restaurant, a medical centre, a hardware store and a convenience store.The Chemical Logistics Hub, called banian tree Logistics Hub, is a 80-hectare facility on Jurong Island to serve companies there. It bequeath direct berths, jetties and other marine facilities that provide gene linkage to the chemical plants via the common service corridors. Logistics services like storage tanks, chemical warehouses, tank cleaning, cleaning and maintenance, drumming, and waste treatment facilities leave also be available. The Institute of Chemical Engineering Sciences (ICES) which w ill be fixed on Jurong Island and to be is expected to be completed in early 2003.Reasons for Choice of LocationThere are many key factors for the choice of location. Singapore is well positioned to play a key social occasion in the growth of Asia-Pacifics petrochemical industry with an integrated hub on Jurong Island. Many multinational companies are already enjoying the benefits of position on Jurong Island. Thus Singapores Jurong Island would thus be the choice location for the petrochemical plant.Jurong Island was formed by reclaiming the channels betwixt the seven islands in phases, and extending beyond into additional sea space to form one big island. When completed, it will form a land area of about 2,650 hectares from an initial mass of less than 1,000 hectares. This will provide flat land for the building of the plant and also allow future expansion.Also the company will easy access to their customers worldwide, because of Singapores strategic location, world-class tran sportation and logistics, telecommunication and IT infrastructure.Singapore also has a highly skilled labour force which are specialized in the field of petrochemisty. Productivity of Singaporean lockers are high as they are noted to have good working attitude and aptitude which would positively affect total production and therefore profit. Furthermore there are many regulation patenting to strikes and work stoppages to Singapore thus there would be no worry for decline of productivity because of this. Moveover Chemical Process Technology Centre which will be ready in early 2003 will be situated on Jurong Island, will feature a production plant to provide practical training for students from the polytechnics and technical institutes so as to produce process technicians that are equipped with the latest technical skill sets to equilibrate their academic knowledge, enabling them to meet future challenges of petrochemical industries.The Chemical Logistics Hub set on Jurong Isalnd itself will provide shippoing infractura other marine facilities would provide linkage to the chemical plants via the common service corridors. Logistics services like storage tanks, chemical warehouses, tank cleaning, cleaning and maintenance, drumming, and waste treatment facilities will also be available This will garter be facilite transportion thus making it more efficient ans personify efficient . Furthermore it would yet start up cost as we would not need in inoccur extear cost in building these facilities.Singapore also offers an extremely pro- course purlieu. The government is highly supportive of set up of petrochemical plants and offer finacial economic aid such as tax incentives,innovation grants and low cost lows which will lower the start up cost. be a petrochemical hub with 70 companies investing more than S$21 billion in oil refining, petrochemical manufacturing and specialness chemical manufacturing and supporting facilities on Jurong Island.There is a linkage among the companies located in Jurong Island. The oil refinery plants (e.g. Shell), which are also located on Jurong Island, will provide feedstock (e.g. Naphtha) for the petrochemical plant. The plants outputs (refined petrochemicals) to end-users in the vicinity or to ports to be exported to other neighboring countries in South East Asia. The sitting of the related industries in close proximity results in an invisible network of partnership that connects companies on the island, Jurong Islands vertical integration will save about 25 to 30 per cent off capital outlay and 10 to 15 per cent logistics cost. Furthermore Jurong Island is located along tanker routes and the availability of infacturure such as ports means the plants outputs can be shipped out advantageouslyFuture plans for ExpansionAs the number of petrochemical plants are set up, competition from varies companys will increase (Table 1). To keep up competitiveness and to expand, we must firstly maxism the output of the current plant.Ramping of production capacity automation machinery improve procedures plump for third shiftsMerger and acquisitionExtensive reseach into making production more cost and laboour efficentive, R&D work to draw more efficient production procedures ,continusing to improve standards and skiulls of proletariansProposal for Development of Wafer Fabrication form in Pasir Ris Wafer Fab parking areaTo process bare wafers made locally and distributed its products worldwideProposal for development of Wafer Fabrication Plant in Pasir RisWafer Fab ParkBrief InformationInputCapital input for Wafer falsehood is high because of the expensive start up cost huge coronations with an average direct investment of US$1 billion per fab. Raw material is silicon. LA pool of skilled labour is needed to run machinesry and to manufacture wafer. Enginneres and researchers needed for R&D. High comsumpution of water and electicity.ProcessesWafer assemblage refers to the multiple processes t hat a wafer goes through with(predicate) to become an integratred circuit product. A wafer, usually composed of silicon, is the base material for integrated circuits. Silicon is processed into cylinder shaped ingot and then sliced and polished into mirror-like wafers of uniform thickness. These go through highly precise and complex manufacturing processes such as oxidation, diffusion, thin film deposition, ion implantation, patterning, cleaning and etching.OutputsThe finished wafer contains hundreds of chips which go though additional processes to become finished integrated circuit products. These integrated circuits are inputs for electronics and computer industries.Information about suitable locationThe proposed location, Pasir Ris Wafer Fab Park is located in the eastern region of Singapore, close to the Tampines regional Centre and the Tampines Wafer Fab Park and served by the Pasir Ris MRT and Tampines Expressway. About 16.2 ha of the 59.1 ha site has been allocated. Industry luminaries have staked their chips here, including United Microelectronics Corporation (UMC), the worlds second largest foundry and Systems on Silicon Manufacturing (SSMC).Figure 1Site Map of Pasir Ris Wafer Fab ParkThe park is fully equppied with specialized infrastructure such as a adequate and uninterrupted tot of electricity and water and a vibration-free environment. The JTC Tampines Dormitory for foreign workers nearby offers 400 units which can house up to 4800 workers to provide convienent and comfarable accommodation for foreign workers. The park is located only a ten minutes driving force from the airport.Reasons for Choice of LocationSingapore is a world-class electronics hub with global leadership in manufacturing solutions and in the globe and management of new products, applications and markets. The electronics industry in Singapore has the highest output in the manufacturing sector, accounting for 55% (or $70.1 billion) of manufacturings total output in 2001. Thus the outlook of starting up a wafer fabrication plant in Singapore is promising. The semiconductor industry will be one of the key sectors driving growth in the electronics industry in the future. Its focus will be on integrated circuit (IC) design wafer fabrication* and testing and assembly.Singapore, with different economic and resource conditions from its neighbors, undertook reforms and infrastructure development that would make it an attractive location for regional offices of multinational corporations and increasingly high value-added manufacturing.Singapore-based MNCs are given incentives, such as tax and financial incentives and As the industry uses more new and sophisticated equipment and technology and automated manufacturing processes, the new jobs created require skilled workers, that is, workers with post-secondary educational qualifications and above. In 1999, 5,000 jobs were created in the electronics industry, of which 42% were jobs that required skilled workers.To meet the needs of the industry for skilled manpower, the stinting Development Board (EDB) works with the Institutes of Higher Learning (IHLs) and research institutes/centres, to carry out research and experience training programmes. In addition, companies are also encouraged to extend their resources to the IHLs to expose students of the state-of-the-art equipment and technology.One of the largest IT markets ($7.5 billion) in the APAC region. Highly developed business culture. Very open to outsourcing and well established Indian business presence-over three hundred Indian business houses and 90,000 NRIs based out of here. Is Indias eighth-largest investor with direct equity investments of about $1.3 billion at end-2001. Indias investment in Singapore has also grown by 14% over the past decade.Adequte facilites, within wafer fabrication park, company will have advantage of being able to share ideas and information with other companies. parcel maintainece and support services and b asic amentites such as roads and power.Singapore headquarters of national and foreign backs.Wafer fabrication very captital intensive, devoplement agencies in Singapore provide financial swear out, schemes for loans to start up company help to pay for set up coast.In terms of product positioning, Singapore is more innovative and advanced. Its lands, infrastructure and facilities for wafer fab are all allocated in a certain area so companies can very start working upon moving in to the building in either of the three wafer fab parks.However, when it comes to active environment, Singapore excels It has no crime to speak of, offers excellent transportation and telecommunications infrastructure, has high-quality English-language schooling, and is generally a more westernized environment for overseas skilled workers. As testament to that, youll find Germans, Japanese, Koreans, Americans, Taiwanese and mainland Chinese all working in Singapores semiconductor sector.Good for foreign ta lent ie Italian and French.Excellt airport, near airport efficient exporting of wafers worldwide.Pasir Ris has industry luminaries United Microelectronics Corporation (UMC), the worlds second largest foundry chance of working with large company.Future plans for expansionIs the watch of Southeast Asia and ideal for tapping into closer markets like China, Malaysia, and Australia. APAC headquarters of most MNCs based out of here. Big business opportunity in that sector.But base stioll in Singapore.Carry out R&D work to develop new, more sophisticated value-added products and more efficient methods of production in fields of wafer fabrication. Turn more to automation and automationm to achieve higher productivity.Set up wafer fabrication plants overseas in countries with lower labour cost such as Taiwan and China while still having hq in Singapore.Mus t be commited to carrying out product development and manufacturing actieveities in Singapore.Make Singapore base for manufacturing waf ers and headquaters services to planet factoris in the region go into partnership with EDB inrisk-sharing partnerhip to invest in overseas projects.Company to retrain worker to equip themselves with cerfiable and critical high-end skills needed by in production of wafer fabrication, obtain grants from Skills development fund to enthrall employees for critical skills training.