Kuala Lumpur (Malaysia) / Duisburg (Germany), 30 August 2022 –PCC SE and PETRONAS Chemicals Group Berhad (PCG) signed yesterday a Letter of Expression of Interest (EOI Letter) with Mentri Besar Terengganu (Incorporated) or MBI, a Terengganu state-owned company, for MBI to undertake a due diligence on PCG PCC Oxyalkylates Sdn. Bhd. PCG PCC was established in 2020 as a joint venture between PCG and PCC SE to build an Oxyalkylates plant in Kerteh, Terengganu.
With the signing, 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 PCG PCC.
The photo shows the contract signing yesterday Monday by representatives of MBI, PCC SE and PCG
(second from right: Peter Berger, member of the management team of PCC SE).
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. The signing is another step towards strengthening the economic development of Terengganu. We welcome this opportunity to be a strategic partner in PCG PCC. 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.
Elaborating further, Peter Berger added, “PCC SE welcomes the State’s investment in PCG PCC Oxyalkylates Sdn. Bhd. 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.”
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.”
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.
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About PCC SE
Headquartered in Duisburg, Germany, PCC SE is the holding company of the globally active PCC Group with its more than 3,300 employees. The PCC Group companies have core competencies in the production of chemical feedstocks and specialty chemicals, silicon and silicon derivatives, and in container logistics. PCC SE concentrates on continuously increasing the enterprise value of its portfolio companies through sustainable investments and the ongoing creation of new value. The largest chemical producers of the PCC Group are PCC Rokita SA, a major chlorine manufacturer and Eastern Europe’s leading producer of polyols, and PCC Exol SA, one of Europe’s most advanced surfactant manufacturers. PCC BakkiSilicon hf. operates in Iceland one of the world’s most modern and climate-friendly silicon metal production facilities. PCC was founded in 1993 by Waldemar Preussner, who, as its sole shareholder, is today Chairman of the Supervisory Board of PCC SE. In fiscal 2021, the PCC Group generated an EBITDA figure of € 197.5 million from consolidated sales of € 976.9 million, with capital expenditures totaling around € 110.9 million.
About PETRONAS Chemicals Group Berhad
PETRONAS Chemicals Group Berhad (PCG) is the leading integrated chemicals producer in Malaysia and one of the largest in Southeast Asia. It operates a number of world-class production sites, which are fully vertically integrated from feedstock to downstream end-products. With a total combined production capacity of 12.8 million metric tons per annum (mtpa), it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol and other basic chemicals and derivative products. Listed on Bursa Malaysia and with three decades of experience in the chemicals industry, PCG is established as part of the PETRONAS Group to maximise value from Malaysia’s natural gas resources.
PCG is one of the top 10 companies in the FTSE4Good Bursa Malaysia (F4GBM) Index, out of 200 largest companies ranked by market capitalisation. It is committed to ensuring that its business practices are in line with globally recognised standards for Environment, Social & Governance (ESG) practices.