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Petronas Chemicals enters oxyalkylates market via 50% stake in PCC SE’s Malaysian unit

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KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) has acquired a 50% stake in German company PCC SE’s Malaysian unit, PCC Oxyalkylates Malaysia Sdn Bhd (PCC-OM), to enter the growing oxyalkylates market.

PCG and PCC SE plan to build an oxyalkylates facility within the Kertih Integrated Petrochemical Complex, Terengganu, to produce ethoxylates and polyether polyols, said PCG.

“The construction of the facility is targeted to commence in 2021 while production is scheduled to begin in 2023,” it said in a statement here, today.

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 fulfilment of individual customer requirements.

This is PCG’s first foray into the specialty oxyalkkylates market.

“This is another milestone for PCG in our quest to develop the Group’s specialty chemicals business segment,” PCG managing director/chief executive oficer Datuk Sazali Hamzah said. “We will continue to explore investing in more technologies and assets that will further expand our high-value chemicals portfolio, thus future proofing our business.”

Waldemar Preussner, chairman of the administrative board of PCC SE, said 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 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.

“In PCG we have found a strong strategic partner both for this investment and also for other potential collaborations in the chemical industry,“ he said.

Oxyalkylates are a group of chemicals comprising ethoxylates, a non-ionic surfactant, and polyether polyols. These 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.

Demand for these two chemicals is 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. It established PCC-OM in 2017 with the intention to expand into the Asian region. – Bernama