GEBENG, Oct 16 — BASF Petronas Chemicals Sdn Bhd (BPC) has invested an additional RM2 billion for the development of three new plants at its integrated petrochemical complex here.
This brings total investments at the site to RM5.4 billion, said Director for Business Management Division, Miguel Peña.
He also said the three new plants, namely an Integrated Aroma Ingredients Complex, and a 2--Ethylhexanoic Acid and Highly Reactive Polyisobutene plant, will gradually start operations from the fourth quarter of 2016.
“The market growth of the products from these plants is steady and continuous. The number of players is limited and we are in a good position.
“These additional plants are also needed to maintain the market supply,” he told reporters on a media familiarisation trip on Friday.
He said the investments will also translate into the creation of 140 high-value direct jobs and spin-off opportunities for over 1,000 local contractors.
Petronas Chemicals has a 40 per cent stake in BPC, with the remainder held by German chemical company, BASF SE.
Peña said the bulk of the RM2 billion additional investments is for the Aroma Complex, which produces flavours and fragrance chemical products.
“The products from the Aroma segment will stabilise the profits of BPC,” he added.
He said products from the integrated petrochemical complex will be marketed globally, with Asia being the major market, due to its growing population.
Meanwhile, Petronas Chemicals Group Bhd Head of Strategic Planning and Ventures Abdul Aziz Othman said, the company will continue to evaluate potential opportunities on other fronts.
“As we move into the future, we need to ensure this site remains competitive. There are always discussions on further adding value, but we are not limiting it to just this site. Perhaps, there could further investments in Pengerang, Johor,” he added. — Bernama
