SPECIALTY chemicals maker Lanxess AG will delay a rubber plant in Singapore because of weakening demand amid the economic downturn and to conserve cash.

The German company announced in February it would build the 400-million-euro (US$564 million) Singapore plant for butyl rubber, targeting Asian tire makers led by China, and scheduled to come on line in 2011.

The facility is now expected to commence operations in 2012, Lanxess said. Groundbreaking - previously scheduled for January 2009 - will also be postponed until the fall.

The company said it expects demand to be very weak in the first quarter of 2009.