JOHOR BARU: Orgkhim Biochemical Holding plans to invest about RM124.5mil (US$30mil) over the next three years to expand its plant in Johor.
Chief executive officer Nikolay Khodov said the investment would strengthen the company’s position as one of the world’s leading producers of safe-petroleum-based extender oils for “green tyre” production.
“We see good growth prospects and opportunities to cater for growing demand for our products in the Asia-Pacific, ’’ he said at a briefing.
Khodov said this after the opening of Norman Process Oils Malaysia Plant Sdn Bhd’s RM245.68mil (US$59.2mil) facility at Tanjung Langsat industrial area in Pasir Gudang.
Present at the event were Russian Ambassador to Malaysia Valery Ermolov, Johor International Trade, Investment and Utility committee chairman Jimmy Puah Wee Tse, Nizny Novgorod Region governor Gleb Nikitin and Malaysia Investment Development Authority (Mida) senior executive director Ahmad Khairuddin Abdul Rahim.
Norman Process Oils is a subsidiary of Russia’s Nizhny Novgorod-based Orgkhim Biochemical.
According to Mida, the RM245.68mil investment by Orgkhim Biochemical is so far the single largest by a Russian company in Malaysia.
Puah said Johor wanted to attract more investments from Russia, especially in the high-technology and high-value industries, as the country is strong in science and technology.
“We have to diversify our investment portfolio and put in more efforts by attracting new countries and to reduce our dependency on the traditional markets, ’’ he said.
Puah said Johor viewed Russia as a potential investor in the state and would work closely with Mida to attract more Russian companies.