On Monday it was noticed that German chemicals broke ground on a 400 million euro plant in Singapore and has shifted to meet increasing demands for tyres in China and India.

It was told by the Company that it would channel 10% of the investment through a cleaner and more energy-efficient manufacturing process towards 'modern technologies engineered to protect the environment'.

“In terms of volume, this investment is the largest in our five-year history. It underlines our commitment to synthetic rubber as well as our customers and to the future growth markets in Asia”, said Axel C. Heitmann, Chief Executive officer of Lanxess, in a statement.

The company said that the plant would start making butyl rubber which was a chemical that was used to make tyres, in the first quarter of 2013.

This plant is located in Jurong Island, a petrochemicals base and has pulled billions of dollars in foreign investment. It was informed that the 100,000 tonne per annum Singapore plant would turn out to be the hub of Lanxess' Asian operations.

It was told by the Company that the factory would allow it to fulfill the rising demand for butyl rubber in China and India. It was noted that the buying of cars in middle class of China and India were increasing.