Kuala Lumpur, 29 August 2022 – PETRONAS Chemicals Group Berhad (PCG) and PCC SE today signed a Letter of Expression (EOI Letter) with Mentri Besar Trengganu (Incorporated) or MBI, a Terengganu state-owned company, for MBI to undertake a due diligence on PCG PCC Oxyalkylates Sdn. Bhd. (PCGPCC). PCGPCC was established in 2020 as a joint venture between PCG and PCC SE to build an Oxyalkylates plant in Kerteh, Terengganu.
With the signing today, the State will undertake the relevant due diligence to make a final investment decision for MBI to acquire from the current shareholders a total of 5% equity in PCGPCC.
The Letter was signed by MBI’s representative, State Secretary of Terengganu, Tengku Sri Bijaya Raja Datuk Tengku Farok Hussin Tengku Abdul Jalil; PCG Managing Director and Chief Executive Officer, Ir. Mohd Yusri Mohamed Yusof; and PCC SE Management Member, Peter Berger, in the presence of Terengganu Chief Minister, Dato' Seri Dr. Ahmad Samsuri Mokhtar.
“PETRONAS has been instrumental in developing Terengganu through its various initiatives in education, community well-being and development as well as environment. Today’s signing is another step towards strengthening the economic development of Terengganu. We welcome this opportunity to be a strategic partner in PCGPCC. Besides acting as a catalyst for growth in the State, PCG and PCC SE’s ongoing oxyalkylates investment will generate job opportunities, including high-skilled jobs for the local community,” said Dato' Seri Dr. Ahmad Samsuri.
Ir. Mohd Yusri said, “PCG welcomes the State’s aspiration to venture into the petrochemical industry. The State has continuously supported PETRONAS and PCG by providing the necessary infrastructure and resources for our projects and growth. Over the years, our strong collaboration has resulted in numerous economic spin-offs which have benefited the people of Terengganu and we hope that this new venture will further strengthen our relationship with the State Government.”
Elaborating further, Peter Berger added, “PCC SE welcomes the State’s investment in PCGPCC. The project is progressing well. The construction of the facility started in 2021 and production is scheduled to begin in 2023. When fully operational, the plant will produce up to 70,000 tonnes per year of specialty ethoxylates and specialty polyether polyols. This project is the first dual-train plant in Southeast Asia (SEA) for oxyalkylates, which targets to capture the growing demand especially in the SEA and Asia Pacific regions.”
Oxyalkylates is a group of chemicals comprising ethoxylates (non-ionic surfactants) 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 detergents, home care and personal care products, while polyether polyols are mainly used to produce polyurethane foam for mattresses and upholstery applications.
