Malaysia speciality chemicals deal

PETRONAS Chemicals Group (PCG) and German chemicals and energy company PCC have signed a shares sale and purchase agreement for PCG to acquire a 50% stake in PCC’s Malaysian subsidiary, PCC Oxyalkylates Malaysia (PCC-OM).

The partnership will help PCG develop its speciality chemical business segment, while allowing PCC to expand into the Asian market. PCG and PCC will build an oxyalkylates facility within the Kertih Integrated Petrochemical Complex, Terengganu. Oxyalkylates comprise ethoxylates and polyether polyols which can be used to make a wide range of products including detergent, personal care products, foam mattresses, and upholstery. The facility will produce ethoxylates and polyether polyols.

Datuk Sazali Hamzah, PCG Managing Director/Chief Executive Officer, said: “This is another milestone for PCG in our quest to develop the Group’s specialty chemicals business segment. We are pleased to be working with PCC, a global surfactant player, in our first foray into the specialty oxyalkylates market, as their experience, expertise and capabilities provide a strategic fit into our growth plans. We will continue to explore investing in more technologies and assets that will further expand our high-value chemicals portfolio, thus futureproofing our business.”

Waldemar Preussner, Chairman of the Administrative Board of PCC, said: "Through this joint venture, we are boosting the expansion of PCC's core businesses of surfactants and polyols in the growing Asian market. The Kertih site is ideal due to raw materials availability and excellent infrastructure with a direct seaport access, thus ensuring competitive production and logistics costs.”

Construction is due to begin in 2021, with production starting in 2023. An R&D centre will also be established at PCC-OM.