PETRONAS Chemicals Group Bhd (PCG) is embarking on a bold strategic direction, aiming for specialty chemicals to contribute over 30% to its revenue within the next decade.
This ambitious target marks a significant evolution from its 11% contribution in 2022 and 21% in 2024.
“We are looking for specialty chemicals to contribute more than 30% of our revenue over the next 10 years,” said PCG managing director and chief executive officer Mazuin Ismail.
“It’s ambitious, but it’s achievable – and we are building the foundation for it today.”
He explained that the company’s ambition to grow its specialty chemicals segment is underpinned by its expanding customer base, innovative products and robust manufacturing centres.
Integrated portfolio
Mazuin highlighted that PCG’s venture into specialty chemicals is a strategic move to strengthen its overall business portfolio.
“When we look at specialty chemicals, one of their key strengths is the closer connection to customers. This proximity allows us to stay in sync with their evolving needs and reduces exposure to the volatility of the world economy,” he explained.
He added that the specialty chemical segment is inherently forward-looking, offering highly tailored, niche solutions aligned with future industry trends.
“This gives PCG the advantage of staying ahead and future-proofing the business.”
This customer-centric approach sharpens PCG’s value proposition, complements the established strength of its commodity petrochemicals business and enables it to reap future growth.
“Ultimately, this combination not only allows us to serve communities by providing the products and solutions consumers need, but also enables us to deliver sustainable value to our shareholders,” Mazuin pointed out.
He emphasised that PCG’s strategy is not about reducing its reliance on commodities, but rather strengthening its traditional core business – the backbone of the company for more than 40 years – which continues to deliver long-standing value and strong demand, especially in South-East Asia.
By building on this solid foundation and layering in specialty chemicals, PCG is creating a more resilient and growth-ready platform.
He shared that the company is not only retaining its existing customers but also expanding its base, with many expected to shift toward more refined, specialty-driven solutions in the future.
“It will be exciting to see our current partners in the commodity space venture into forward-looking solutions that they can, in turn, offer to their customers.”
Diversification
PCG’s global presence in over 80 countries – with 21 manufacturing sites across 10 countries - gives it a strong advantage in executing its diversification strategy.
Mazuin highlighted that even within its commodity portfolio, there is diversity – spanning fertilisers, methanol, olefins and derivatives – which has now been further expanded through its specialty chemicals segment.
The specialty portfolio includes a range of intermediates including polyols and oxos, silicon-based products and more.
“This diversity in terms of product range serves as a natural hedge, as different segments respond differently to market conditions, allowing PCG to spread risk across its portfolio.
“By building on intermediate platforms to develop niche specialty products, PCG gains not only width but also depth in its offerings.”
Innovative solutions
Innovation is at the heart of PCG’s specialty chemicals strategy, enabling the company to deliver advanced, high-performance and sustainable solutions tailored to market needs.
While specialty products are highly customised, Mazuin explained, “we look at what kind of solutions we give and in what segment we give”.
The focus remains on addressing niche customer needs through continuous innovation and technology, with growth tracked across four key segments:
> Engineered fluids solutions
PCG developed Synmerse DC, a PFAS-free (PFAS are known as “forever” chemicals), readily biodegradable immersion cooling fluid for data centres. “We have been working with Intel and several Original Design Manufacturers (ODMs) and have been able to develop more sustainable emission cooling solutions for data centres,” said Mazuin. This product first targets the Asian market, where growth potential and customer readiness are strong, he elaborated.
> Personal care solutions
PCG’s Emfinity CGSA 200B is a 100% natural emollient that moisturises and protects the skin. With a velvety texture, cushioned finish, excellent spreadability and high refractive index, it delivers shine for both skin and hair – meeting rising demand for clean, bio-based cosmetics. “Our focus areas are colour cosmetics, skin care and premium hair care. Through partnerships, we make future-ready and collaborative innovation accessible,” said Mazuin.
> Advanced polymer solutions
Akestra, developed by PCG, enhances the thermal performance of Polyethylene Terephthalate (PET) and enables its use for hot food packaging without compromising recyclability. “Akestra empowers brand owners and manufacturers to deliver high-performance,visually appealing and regulatory-ready packaging, while supporting circularity and sustainability.”
While already adopted in Europe, PCG is working to scale this innovation across Asia.
> Coating solutions
PCG introduced Neptem, a next-generation emulsifier portfolio that enables high-performance, low-Volatile Organic Compounds (VOC) waterborne alkyds – supporting a smooth transition from solvent-based coatings. These eco-friendly coatings help customers meet regulatory and environmental goals without sacrificing performance. “Coating solutions play a strategic role in supporting resin producers and formulators. We are developing a water-based additive that will minimise environmental impact across their lifecycle while still delivering high performance. This will accelerate the industry’s shift toward more sustainable coatings,” said Mazuin.
Across all these segments, PCG works closely with customers to co-develop products that enhance quality and deliver new end-consumer solutions.
Innovation is supported by strong manufacturing capabilities – including a plant near Amsterdam that produced three new products within four months of acquisition.
Mazuin added that BRB International B.V and Perstorp Group’s manufacturing plants in Sweden, Germany and the Netherlands also promote sustainable practices through advanced technologies.
The acquisitions of BRB and Perstorp have significantly accelerated PCG’s innovation capabilities, with Mazuin noting that the pace of innovation on the specialty side is “a lot faster” and more focused on customer applications.
Perstorp’s 140-year history brings strong brand credibility and customer trust, enabling deeper collaboration and the development of advanced, customer-centric solutions.
“In 2022, PCG launched eight new products and this number increased to 36 last year.
“We are anticipating a further launch of 20 to 40 new products this year,” he said.
Overcoming challenges
The specialty chemicals segment brings unique challenges, particularly the risk of products becoming commoditised over time.
Mazuin explained that success in this space hinges on continuous innovation, agility and maintaining close relationships with customers to address their niche needs. To stay ahead, PCG focuses on remaining at the forefront of specialty chemical’s technology and innovation.
“We stay at the sharp edge of the specialty chemical niche so we can further sharpen ourselves,” Mazuin said.
The impact of specialty chemicals is already evident, with PCG broadening its product offerings and providing more sustainable solutions, which has boosted customer confidence and expanded its base.
The integration of Perstorp and BRB has significantly strengthened PCG’s innovation capabilities and extended its reach into Europe and niche markets seeking sustainable chemical solutions.
Advancing sustainability
PCG’s specialty operations are underpinned by robust sustainability practices, with manufacturing centres in Sweden, Germany and the Netherlands operating under stringent environmental regulations.
“Our facility in Waspik, the Netherlands, has even achieved net-zero emissions in 2024, reflecting PCG’s commitment to more sustainable production.”
Among others, the company focuses on sourcing more sustainable feedstock, maximising renewable energy use and improving operational efficiency to reduce waste and emissions.
“For instance, in Perstorp, we have been looking at how much we can maximise the use of renewable energy to power up all our manufacturing centres,” said Mazuin.
“By offering recyclable and energy-efficient products, PCG also supports its customers in reducing their carbon footprint – aligning its business with broader environmental and sustainability goals.”
Talent development
Attracting and retaining specialised talent is essential to PCG’s innovation-driven growth.
Mazuin believes that purpose is the key motivator, explaining that PCG’s mission of solving global needs through advanced, high-performance and sustainable products attracts individuals who are driven to innovate for a meaningful cause.
“We are able to attract talent that wants to innovate, wants to push the boundary because we are doing good with chemistry.”
To support this, PCG provides an enabling ecosystem with labs in Europe, Malaysia and China, keeping talent close to customers and the challenges they are solving. This proximity encourages co-development and allows teams to clearly understand the impact of their work.
Talent development is also fostered through co-creation with both customers and joint venture partners, embracing a “learning by doing” model that blends technical, cultural and collaborative insights.
“Nothing compares to collaborating side by side with our customers in the same lab to explore solutions,” Mazuin added, emphasising how this hands-on approach enables talent to thrive and push the boundaries of innovation.
To learn more, visit https://www.petronas.com/pcg/
