Malaysia’s Petronas Chemicals Group (PCG) and Germany’s PCC have established a joint venture to produce oxylates in Malaysia. For the purpose, Petronas has agreed to acquire a 50% share in PCC Oxyalkylates Malaysia (PCC-OM), a project company set up by the Duisburg group in 2017 to expand its production of the chemicals into Asia. The deal marks the Malaysian petrochemicals powerhouse’s entry into the growing oxyalkylates market.

Oxyalkylates are a group of chemicals comprising ethoxylates, a non-ionic surfactant, and polyether polyols. Ethoxylates are used in the production of detergents, home care and personal care products, while polyether polyols are mainly used to produce foam mattresses and upholstery applications. Demand for the two chemicals is expected to grow, said PCG, especially in the Southeast Asia and Asia Pacific regions.

PCG and PCC are planning to build an oxyalkylates plant within the Kerteh Integrated Petrochemical Complex in Terengganu. The partnership did not disclose the plant’s capacity. Construction is scheduled to start in 2021 with start-up due in 2023. A joint research and development center will also be part of the site.

Walter Preusser, chairman of PCG’s administrative board, said the Kerteh site is ideal due to the availability of important raw materials and an excellent infrastructure with a direct seaport, thus ensuring competitive production and logistics costs.

The cooperation with PCC is “another milestone for PCG in our quest to develop the Group’s specialty chemicals business segment,” said managing director and CEO Datuk Sazali Hamzah. “We are pleased to be working with PCC, a global surfactant player, in our first foray into the specialty oxyalkylates market, as their experience, expertise and capabilities provide a strategic fit into our growth plans.. We will continue to explore investing in more technologies and assets that will further expand our high-value chemicals portfolio, thus future-proofing our business.”

Author: Elaine Burridge, Freelance Journalist