KUALA LUMPUR, Sept 14 (Bernama) -- PETRONAS Chemicals Group Berhad (PCG) recently entered into a Shares Sale and Purchase Agreement (SSPA) with PCC SE to acquire 50% of the latter’s shares in its Malaysian subsidiary, PCC Oxyalkylates Malaysia Sdn Bhd (PCC-OM), marking its entry into the growing oxyalkylates market.
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. Demand for these two chemicals are expected to grow especially in the South East Asia (SEA) and Asia Pacific regions.
PCC SE, headquartered in Duisburg, Germany, is a global surfactant player with an established know-how gained over several decades in the development and production of surfactants and polyols. It established PCC-OM in 2017 with the intention to expand into the Asian region.
With this acquisition, PCG and PCC SE plan 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 is 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 fulfillment of individual customer requirements.
This strategic partnership leverages on the strengths of both companies; PCG as one of the leading integrated chemicals players in SEA and PCC SE with its extensive range of products and chemical formulations serving a large variety of applications. The partnership will enable PCC-OM to deliver high value innovative solutions to customers in the oxyalkylates market in the region.
Elaborating on the acquisition, PCG Managing Director/Chief Executive Officer Datuk Sazali Hamzah said, “This is another milestone for PCG in our quest to develop the Group’s specialty chemicals business segment. We are pleased to be working with PCC SE, a global surfactant player, in our first foray into the specialty oxyalkkylates market, as their experience, expertise and capabilities provide a strategic fit into our growth plans. We will continue to explore investing in more technologies and assets that will further expand our high-value chemicals portfolio, thus future proofing our business.”
Waldemar Preussner, Chairman of the Administrative Board of PCC SE, stated: "Through this joint venture, we are boosting the expansion of PCC's core businesses of surfactants and polyols in the growing Asian market. The Kertih site is ideal due to raw materials availability and excellent infrastructure with a direct seaport access, thus ensuring competitive production and logistics costs. 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. In PCG we have found a strong strategic partner both for this investment and also for other potential collaborations in the chemical industry."
About PETRONAS Chemicals Group Berhad
PETRONAS Chemicals Group Berhad (PCG) is the leading integrated chemicals producer in Malaysia and one of the largest in South East 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.
About PCC SE
Headquartered in Duisburg, Germany, PCC SE is the parent and investment holding company of the globally active PCC Group. The Group companies of PCC SE have core competencies in the production of chemical feedstocks and specialties, with container logistics as a further focus of the investment portfolio. An investor committed to the longer term, 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 was founded in 1993 by Waldemar Preussner, who, as its sole shareholder, is today Chairman of the Administrative Board of PCC SE. With around 3,500 employees worldwide, the PCC Group generated consolidated sales of 767.5 million euros in fiscal 2019, with its capital expenditures totaling163.5 million euros.
For further information about PCC, please go to: https://www.pcc.eu
SOURCE: PETRONAS Chemicals Berhad
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