Sarawak moving up the value chain

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State MoU with Korean firm to produce ammonia will help create petrochemical cluster

Adenan (front row-centre) and members of the state’s delegation and their Huchems counterparts in a group photograph after the signing ceremony in Seoul yesterday.

SEOUL, South Korea: Chief Minister Datuk Patinggi Tan Sri Adenan Satem is confident that Sarawak will be able to move up the value chain in the petrochemical industry as one more agreement was sealed between the state government and a Korean petrochemical company here yesterday.

He believed that the company, leveraging on Sarawak’s abundant stock of offshore natural gas, will not only produce ammonia but will also move further downstream
to produce fine chemicals to enhance the petrochemical value chain.

The chief minister, leading the state’s first investment mission to Korea since taking over the helm of the state government on Feb 28 this year, was on hand to witness the signing of a principle agreement between the state government and Huchems Fine Chemical Corporation of South Korea for the setting up of an ammonia plant in Bintulu at a leading hotel here yesterday morning.

Adenan, accompanied by his wife Datin Patinggi Dato Jamilah Anu, Minister of Industrial Development Datuk Amar Awang Tengah Ali Hasan, State Secretary Tan Sri Datuk Amar Mohd Morshidi Abdul Ghani, Assistant Minister of Rural Development Datuk Julaihi Narawi and Assistant Minister of Industrial Estate Development Datuk Peter Nansian Ngusie and their wives.

Other members of the delegation included the director of State Planning Unit Datu Ismawi Ismuni, permanent secretary of the Ministry of Industrial Development Datu Liaw Soon Eng, chief executive officer of Sarawak Energy Berhad Datuk Torstein Dale Sjotveit and Nangka assemblyman Dr Annuar Rapa’ee.

Adenan in his address before the signing ceremony described the agreement as a significant milestone in the state’s pursuit towards industrialisation as envisaged in the Sarawak Corridor of Renewable Energy (SCORE) programme.

The chief minister added that the state government welcomed the company which has the capital, technology and expertise to come and invest in Sarawak.

“The investment would help to position Sarawak in the petrochemical global supply chain,” he said.

He expressed hope that relevant supporting industries from South Korea will also come to invest in Sarawak to help create a petrochemical cluster in the state.

Adenan added that the proposed investment by Huchems in the petrochemical industry will create both business and employment opportunities in the state.

“With the coming of Huchems to Sarawak, the private sector in the state would have the opportunity to participate in whatever business spin-offs created by Huchems.

“At the same time, young Sarawakians will have the opportunities to work in the proposed manufacturing plant and other related industries supporting the plant,” he elaborated.

The chief minister also witnessed the signing of a Memorandum of Understanding (MoU) between the Taekwang Group and the state government on the proposed shoe manufacturing plant in Lawas.

The company, which has another plant in Vietnam, is a leading manufacturer of the world class Nike brand of shoes.

Earlier, Awang Tengah and the chairman of Huchems, Park Yeon Cha, also spoke.

Both Morshidi and Ismawi represented the state government at the signing ceremonies.

Also present was the Malaysian Ambassador to South Korea, Datuk Rohana Ramli.