Petronas Chemicals to collaborate on circular economy for plastics

Petronas Chemicals head of manufacturing Mahadzir Rani in an exchange of agreement wtih Plastic Energy founder and CEO Carlos Monreal

KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) is partnering chemical recycling firm Plastic Energy Ltd to address the issue of plastic waste in Malaysia that cannot be recycled by conventional means.

In a statement issued today, PCG said the two parties will perform a feasibility study to establish a facility to convert plastic waste into optimal feedstock for Plastic Energy to create recycle virgin-quality plastics.

"The strategic collaboration marks the first step towards a circular economy which maximises the plastics value chain," said PCG.

"Depending on the outcome of the study, PCG and PLASTIC ENERGY may consider building a commercial plant in Malaysia."

Meanwhile, PCG will be able to utilise the feedstock for polymer production in its petrochemical complex in the Pengerang Integrated Complex and obtain circular polymer certification from International Sustainability and Carbon Certification (ISCC).

"Our partnership with PLASTIC ENERGY is in line with our purpose towards becoming a progressive energy and solutions partner that enriches lives for a sustainable future. 

"As a responsible business entity, we have embedded our sustainability agenda within our operations as a critical driver for business growth and in creating value for our stakeholders," said PCG managing director and CEO Datuk Sazali Hamzah.