PetChem joins specialty chemical market with new buy


“This is another milestone for PetChem in our quest to develop the group’s specialty chemicals business segment, ” managing director and chief executive officer Datuk Sazali Hamzah said.

KUALA LUMPUR: Petronas Chemicals Group Bhd (PetChem) has entered the growing oxyalkylates market after acquiring German company PCC SE’s 50% stake in its Malaysian unit, PCC Oxyalkylates Malaysia Sdn Bhd (PCC-OM).

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

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

The partners also intend to establish a joint research and development (R&D) centre at PCC-OM to ensure a high level of innovation.

“This is another milestone for PetChem in our quest to develop the group’s specialty chemicals business segment, ” managing director and chief executive officer Datuk Sazali Hamzah said.

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

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.

“We will continue to explore investing in more technology and assets that will further expand our high-value chemicals portfolio, thus future proofing our business, ” Sazali said.

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

PCC SE, with its headquarters in Duisburg, 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 to expand into the Asian region. — Bernama

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