SINGAPORE is a key growth location for global industrial chemical supplier Huntsman, as the company looks to sink its roots deeper in Asia.
Mr Paul Hulme, Huntsman's global president of its textile effects division, said yesterday that the firm plans to move its research and development (R&D) capabilities from Europe to Asia.
'Singapore is a strategic option we will consider as we go forward in the next two to three years, in particular as we move that capability from Basel, Switzerland, to Asia,' he said.
The plan comes soon after Huntsman Textile Effects (TE) - its textile dyes and chemicals unit - moved its headquarters from Switzerland to Singapore in March.
And although key manufacturing, research and technology, European customer service and advanced materials units remain in Basel, the firm has also recently set up R&D units in Mumbai, India, and Panyu City in China's Guangzhou province.
Mr Hulme confirmed that Huntsman has plans to develop a regional hub for its shared services and has touched base with the Economic Development Board about potentially setting up a research facility here.
'And, of course, I will be promoting Singapore as an ideal location for that regional shared service headquarters. That would bring many professional jobs to Singapore,' he added.
'The attraction of Singapore is that it has very good infrastructure to support business... unlike the other locations.'
The global market for textile dyes and chemicals is worth about US$10 billion (S$14.4 billion), of which there is US$7 billion worth of products Huntsman can supply.
Last year, Huntsman achieved sales of US$1 billion in the segment. And while that was a slight dip from the US$1.2 billion in 2007, it still represents 14 per cent of its accessible market share, of which 55 per cent was derived from Asia.
Mr Hulme added that despite the global demand drought, the firm still managed positive growth this year. 'In the second quarter, we saw a 22 per cent increase, which was all in Asia; in the third quarter, we'll probably see a further 10 per cent also in Asia. What we are not seeing is any recovery in Europe and America.'