PETRONAS Chemicals Group Bhd (PCG) entered into a shares sales and purchase agreement (SSPA) with international chemicals, logistics and energy corporation PCC SE to acquire 50% of the latter’s shares in its Malaysian subsidiary, PCC Oxyalkylates Malaysia Sdn Bhd (PCC-OM).
With the acquisition, PCG and PCC SE plans to build an oxyalkylates facility within the Kertih Integrated Petrochemical complex, Terengganu to produce ethoxylates and polyether polyols.
The construction of the facility is targeted to commence in 2021 while production in scheduled to begin in 2023. The partners also intend to establish a joint research and development (R&D) centre at PCC-OM to ensure a high level of innovation and fulfilment of individual customer requirements.
PCG managing director and CEO Sazali Hamzah said that the partnership presents another milestone in PCG’s quest to develop specialty chemicals and that working with PCC SE in its first foray provides a strategic fit into its growth plans.
Meanwhile, PCC SE chairman of the administrative board Waldemar Preussner said that the joint venture will allow PCC to boost the expansion of its core businesses of surfactants and polyols in the growing Asian market.
“This project enables us to leverage on 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,” Preussner added.
Headquarted in Duisburg, Germany, the agreement marks PCC SE’s entry into the growing oxyalkylates market. It established PCC-OM in 2017 with the intention to expand into the Asian region.
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.
The demand for these two chemicals is expected to grow especially in the South East Asia (SEA) and Asia Pacific regions. – Sept 16, 2020