KUALA LUMPUR, Sept 25 — Dialog Group Bhd’s wholly-owned indirect subsidiary, iDialog Malic Acid Sdn Bhd, will build, own and operate a malic acid plant in Pahang, with an investment value of approximately US$80 million (RM374.7 million).
In a filing with Bursa Malaysia today, the group said that the plant, in Gebeng, which is near Kuantan Port, will have an annual production capacity of approximately 12,000 tonnes of malic acid.
The plant will be situated within the Integrated Chemical Site operated by BASF Petronas Chemicals Sdn Bhd.
“This represents Dialog’s first foray into the production of specialty chemicals and acts as a catalyst for the group to expand its footprint in this sector by producing high-value speciality chemical products,” it said.
Malic acid is a specialty chemical that is mainly used as a food additive in the food and beverage industry.
“Dialog’s proposed development of its malic acid plant in Malaysia will not only support the growing demand in South-east Asia but also tap into business opportunities created by the increasing demand for malic acid worldwide.
“This plant will supply the required malic acid to major customers and distributors in Malaysia and overseas. The feedstock for the production of the malic acid will be supplied by local suppliers,” it said.
Dialog said the project to build, own and operate a specialty chemicals plant producing malic acid will further expand its downstream business, which is in addition to the existing venture to produce food-grade recycled PET pellets, currently undergoing commissioning.
“Both projects represent substantial investments to strengthen Dialog’s downstream and sustainable sector generating additional long-term recurring income to the group,” it said.
The group said it will remain focused and steadfast in the pursuit of diversification across the upstream, midstream and downstream energy sectors as well as the sustainable and renewable sector to strategically position the group to weather different economic cycles.
“The project will also spur socio-economic development of the East Coast Economic Region by creating job opportunities for locals,” it said. — Bernama
