Manufacturing process will use a highly-efficient patented technology developed by
Orgkhim, Russian innovative company JOHOR BAHRU, Nov 8 (Bernama) --
Russian innovative company Orgkhim held a grand opening ceremony of its new manufacturing facility in the state of Johor, Malaysia.
The grand opening event was attended by high-ranking guests, including H.E. Valery Ermolov, Ambassador Extraordinary and Plenipotentiary of the Russian Federation to Malaysia, Gleb Nikitin, Governor of Nizhny Novgorod Region, Aleksei Gruzdev, Deputy Minister of Industry and Trade of Russian Federation, Menteri Besar of Johor’s representative, YB Jimmy Puah Wee Tse, Johor State International Trade, Investment and Utility Committee Chairman, Victor Tsebulaev, Chairman of the Board of Orgkhim Biochemical Holding, Nikolay Khodov, CEO of Orgkhim Biochemical Holding and Mr. Ahmad Khairuddin Abdul Rahim, Senior Executive Director of the Malaysian Investment Development Authority (MIDA).
Orgkhim Biochemical Holding is one of the leading global manufacturers of “green chemistry” safe and environment-friendly products. Orgkhim’s biggest manufacturing facility, its headquarters and R&D centre are located in the Nizhny Novgorod region. For instance, the manufacturing plant in Uren of Nizhny Novgorod region has become the first to implement the unique technology developed by Orgkhim to treat petrochemical products by stripping off their hazardous carcinogenic components. This project has been endorsed by the regional Government of Nizhny Novgorod.
The plant in Johor Bahru will become the first Orgkhim integrated manufacturing facility outside Russia. It will be an excellent example of support from the Government of Malaysia to Russian investments.
According to Mr. Ahmad Khairuddin who represented the CEO of MIDA at the event, said, “We foresee this project will be a catalyst in boosting the development of the chemicals and chemical products industry in the country. It is in line with Malaysia’s aim to increase its petrochemicals output to cater to Asia-Pacific’s rising demand for premium specialty and eco-friendly chemicals. As of June 2019, a total of 1,502 manufacturing projects in the chemicals and chemical products industry with investments of RM58.3 billion have been implemented in Malaysia. Of this, 57% or RM33.5 billion was from foreign sources, while the balance of 43% or RM24.8 billion was from domestic investments. These implemented projects have created a total of more than 61,600 jobs for the country. For the first half of this year, MIDA has approved an additional 38 manufacturing projects for the industry with investments worth RM1.66 billion.”
Orgkhim manufacturing will provide the region with new jobs and will become one of the biggest taxpayers to the local budget. 78 new jobs have been created during construction, start-up and operation of the new facility.
We can arguably call Orgkhim the global leader of scientific research in the field of carcinogenic safety. The outcomes of research, held together with Orgkhim’s R&D team, have become a foundation to several provisions of European regulations concerning restriction of carcinogenic substances in various materials (REACH).
Likewise, the manufacturing process in Malaysia will use the unique patented technology that has been implemented at Orgkhim’s manufacturing facilities in Russia for over ten years.
The Johor Bahru plant is planned to manufacture a broad range of products under Orgkhim’s flagship brand NORMAN for “green” extender oils used in tires, synthetic rubbers and rubber mixes. Thanks to its extremely low carcinogen content, NORMAN products are in high demand from the largest global tire and synthetic rubber makers.
In addition the manufacturing, the investment project covers the construction of a tank farm facility to store feedstock and finished product, with a capacity for further commercial expansion. The total Capex in this project amounts to USD59.2 million.
If we look back, on 12 February 2018, the ground breaking ceremony was held at the port of Tanjung Langsat in the state of Johor, Malaysia. Malaysian ESSTAR VISSION was selected as the EPC contractor.
The guests of the grand opening ceremony had the opportunity to visit the manufacturing facilities of Orgkhim’s subsidiary with a guided tour. About Orgkhim:
Biochemical Holding Orgkhim is a Russian innovative company, developer and manufacturer of large-capacity products of "green chemistry" with an annual turnover of more than $ 150 million. It is the second in the world and the only Russian developer of technology and manufacturer of non-carcinogenic process oils-fillers used in the production of tires and synthetic rubbers, as well as the leader of the Russian market for the production of a wide range of forest chemical products: derivatives of rosin, turpentine for adhesives, adhesives, road markings, etc.
Orgkhim produces world-class products, which are based on the unique technologies of its own research center, and is one of the few Russian enterprises whose products are mainly exported: its share in the total sales of the holding is more than 60%. The company's decision-making center is located in Nizhny Novgorod, the holding's production facilities are located in Uren (Nizhny Novgorod Region), Voronezh and Lesosibirsk (Krasnoyarsk Region), service sites have been established in Perm and Togliatti. About MIDA
MIDA is the government's principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook.
Photos from the event can be downloaded here. SOURCE: Malaysian Investment Development Authority
FOR MORE INFORMATION, PLEASE CONTACT:
Name: Ms. Crystalle Toh
Tel : +6012 731 3493
Name: Ms. Surayu Susah
Director, Chemical and Advanced Material Industries Division
Tel: 03-2267 6773