PCG, PCC ink deal to jointly produce specialty chemicals
14 Sep 2020
Petronas Chemicals Group Berhad (PCG) is acquiring a 50 per cent stake in PCC SE’s Malaysian subsidiary PCC Oxyalkylates Malaysia Sdn Bhd (PCC-OM), marking its entry into the growing oxyalkylates market.
PCG said with the acquisition, PCG and PCC SE planned to build an oxyalkylates facility within the Kertih Integrated Petrochemical Complex, Terengganu to produce ethoxylates and polyether polyols.
Construction of the facility is targeted to commence in 2021 while production is scheduled to begin in 2023.
The partners also intend to establish a joint research and development (R&D) centre at PCC-OM to ensure a high level of innovation and fulfillment of individual customer requirements.
“This strategic partnership leverages on the strengths of both companies; PCG as one of the leading integrated chemicals players in Southeast Asia and PCC SE with its extensive range of products and chemical formulations serving a large variety of applications.
“The partnership will enable PCC-OM to deliver high value innovative solutions to customers in the oxyalkylates market in the region,” it said.
PCG managing director and chief executive officer Datuk Sazali Hamzah said the company would continue to explore investing in more technologies and assets to expand its high-value chemicals portfolio, thus future proofing its business.
“”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 SE, a global surfactant player, in our first foray into the specialty oxyalkkylates market, as their experience, expertise and capabilities provide a strategic fit into our growth plans,” he said.
PCC SE chairman Waldemar Preussner said through the joint venture, the company was 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.
“This project enables us to leverage on the know-how we have gained from decades of oxyalkylates production in our facility and the new R&D centre for customers in Asia will create a pathway for expanding our product portfolio.
Oxyalkylates are a group of chemicals comprising ethoxylates, a non-ionic surfactant, and polyether polyols.
The chemicals are used for the manufacture of a wide range of end products.
Ethoxylates are used among others, in the production of detergent, home care and personal care products, while polyether polyols are mainly used to produce foam mattresses and upholstery applications.
PCG said demand for these two chemicals was expected to grow especially in the Southeast Asian and Asia Pacific regions.
PCC SE, headquartered in Duisburg, Germany, is a global surfactant player with an established know-how gained over several decades in the development and production of surfactants and polyols.
Source: NST Posted on : 14 September 2020