Orgkhim’s Johor plant to be the First Producer of Carcinogen-Free Rubber Process Oils (RPOs) in Malaysia
Norman Process Oils Malaysia Plant Sdn Bhd, a subsidiary of Orgkhim Biochemical Holding from Russia is building a USD50 million (RM200 million) facility at Tanjung Langsat, Pasir Gudang to manufacture petroleum-based extender oils used in tires, synthetic rubbers and rubber compounds
Johor Bahru, 12 February 2018 – Norman Process Oils Malaysia Plant Sdn Bhd, a subsidiary of Orgkhim Biochemical Holding from Russia is building a USD50 million (RM200 million) facility at Tanjung Langsat, Pasir Gudang to manufacture petroleum-based extender oils used in tires, synthetic rubbers and rubber compounds.
The Malaysian facility will supply markets in the Asia Pacific region with a particular focus on China as well as other established markets including Malaysia and Singapore. The 70,000 tons per annum unit will produce the company’s TDAE (treated distillate aromatic extract), TRAE (treated residual aromatic extract) and S-RAE (safe RAE, “green” analogue of traditional RAE) products.
The Groundbreaking Ceremony was attended by YB Datuk Tee Siew Kiong, Chairman of Johor State Tourism, Domestic Trade and Consumerism Committee, who represented the Chief Minister of Johor. Also present were Dato’ Azman Mahmud, Chief Executive Officer of Malaysian Investment Development Authority (MIDA), Mr. Nikolay Khodov, CEO of Orgkhim Biochemical Holding and Mr. Aleksandr Volkov, Director, Norman Process Oils Malaysia Plant.
Speaking at the event, Dato’ Azman said, “This investment does not only demonstrate your confidence in Malaysia’s long-term investment propositions, but also the thriving state of the chemical industry in the country. We are excited that upon completion of this project, Orgkhim will be the first company to produce carcinogen-free RPOs in Malaysia. It will strategically put Malaysia on the map as one of the few places in the world producing this premium specialty and eco-friendly chemical. Malaysia will certainly benefit from the sizeable patented technology transfer into the country.”
“The direct users of this specialty material, especially companies in the tire and rubber industry, will benefit much from the presence of Orgkhim here. They will be able to source for more cost-competitive raw materials and improve the quality of their output, resulting in safer and more EU compliant products that are fit for export purposes. When fully implemented, a total of 69 Malaysians will have the opportunity to work with this international company. Local vendors can also leverage on business opportunities arising from the many services required by the plant operation,” added Dato’ Azman.
Orgkhim Biochemical Holding is the top Russian and second worldwide producer of safe petroleum-based extender oils for “green” tires production around the world. Continental, Goodyear, Pirelli, Hankook and other big global tire makers have chosen Orgkhim’s NORMAN low-PCA processing oil made in the Russian town of Uren near Nizhny Novgorod area, and supplied to their production units in Europe, Africa and Asia.
“Today, we supply China and Korea and other Asian countries directly from Russia. Our volumes are growing so we will easily move production of these volumes to Malaysia,” said Orgkhim’s Head of Marketing.
According to MIDA’s record, as at September 2017, a total of 2,073 manufacturing projects in the chemical industry have been approved with investment worth RM96.5 billion. Out of the total, 59.5% (RM57.4 billion) was from foreign sources while the balance of 40.5% (RM39.1 billion) was from local sources. These projects have created a total more than 97,000 jobs for the country.
For more information, please contact:
Ms. Doreen Yeo
Tel : +6012-2793493
Email: [email protected]
Ms. Umarani Muniandy
Director, Chemical & Advanced Materials Division, MIDA
Tel.: 03-2267 6678
Email: [email protected]
Russia’s ORGKHIM Biochemical Holding, a Nizhny Novgorod-based holding, plans to build a USD 50 million facility in Malaysia to manufacture petroleum-based extender oils used in tires, synthetic rubbers and rubber compounds.
MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become a strong and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 23 overseas offices. Moving forward, MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era.