Wednesday, October 23

PCG to spend US$12 billion for future deals

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Photo shows the petrochemical project site at the Pengerang Integrated Complex in Pengerang. — Bernama photo

Shamsairi Mohd Ibrahim

KOTA TINGGI: Petronas Chemicals Group Bhd (PCG) has earmarked about US$12 billion to be spent over the next 18 years for future deals, with the focus on specialty chemicals.

Head of commercial Shamsairi Mohd Ibrahim said this plan also includes mergers and acquisitions (M&As) as well as identifying more projects especially those that fulfil the company’s three-pronged growth levers.

To date, he said PCG has shortlisted 20 projects in derivatives and specialty chemicals to be potentially developed at the Petronas Refinery and Petrochemical Integrated Development (RAPID) in Pengerang, Kerteh in Terengganu or elsewhere in the world.

“Da Vinci is one of the projects that we have acquired…and more will be coming.

“Those are projects (20 projects) that we have earmarked, but there are also companies that are knocking on our door that want us to be their partners, so those are the things that we are evaluating,” he told reporters at a media familiarisation visit to the petrochemical project site at the Pengerang Integrated Complex (PIC) in Pengerang on Thursday.

In May, PCG acquired Da Vinci Group B.V., a Netherlands-based company, marking its foray into specialty chemicals markets as the latter has global operations in those markets. Shamsairi said all these are in line with their strategy as they target 25 per cent of the product portfolio to come from differentiated and specialty products by 2037.

“Currently, specialty products only account for barely two per cent (of the total product portfolio), then the isonanol will increase (the specialy portfolio) to five per cent, and we will continue to put on new capacity so by 2037, we target 25 per cent of the product portfolio is based on those products, differentiated and specialty products,” he said.

Specialty chemicals can be used to produce perfume, vitamins as well as animal feeds.

The group’s business is primarily in the manufacturing, marketing and selling of a diversified range of chemical products including olefins, glycols, polymers, fertilisers, methanol and other derivatives products.

It has a total combined production capacity of 12.8 million tones per annum with operations spanning across seven world-class production sites in Malaysia, two of which are fully vertically integrated from feedstock to derivatives and specialty chemicals. — Bernama