Kuala Lumpur – Petronas Chemicals Group Berhad (PCG) and LG Chem are to jointly establish a 200 kilotonnes per annum nitrile butadiene latex (NBL) plant in Malaysia, PCG announced 24 Aug.
The investment at the Pengerang integrated complex (PIC) in Johor is in response to growing global demand for nitrile rubber gloves, of which Malaysia is the world’s largest exporter.
Construction on the project will begin in 2021, with production scheduled to start in 2023, said PCG, adding that the collaboration with LG Chem “will create new revenue streams and unlock new markets by optimising resources in both companies.”
The partners, it added, will work together to offer various grades and new applications of NBL as well as develop high-value added products through continuous R&D and investments.
The partnership “provides a compelling entry point into the growing NBL-based products,” according to Datuk Sazali Hamzah, PCG managing director/CEO.
PCG, he said, will also enhance its presence in attractive end-markets, especially for personal care and healthcare, mainly in the Asia Pacific region.
“This collaboration further strengthens the pursuit of our growth agenda, having acquired a silicone player last year, continued Sazali.
“With more specialty chemicals in our portfolio, we are moving into segments with higher growth potential.”