KUALA LUMPUR (April 22): Petronas Chemicals Group Bhd (KL:PCHEM), or PCG, announced on Tuesday that its Pengerang Petrochemicals Complex in Johor — the group’s largest growth project under its olefins and derivatives segment in partnership with Saudi Aramco — commenced commercial operations in November 2024.
In a statement issued in conjunction with its annual general meeting, the group also said that its isononanol plant at the same site has achieved on-spec production and remains on track to reach full operational capacity by 2025.
Isononanol, a specialty chemical, is primarily used in the manufacture of higher molecular weight plasticisers, which are key inputs in automotive and building applications. The isononanol plant will have an annual production capacity of 250 KTPA, the group said.
According to PCG's latest annual report, the Pengerang Petrochemicals Complex is designed to produce 2,450 kilotonnes per annum (KTPA) of petrochemical products, including polymers and glycols. These products are essential components in a wide range of everyday consumer goods.
“PCG is also extending the value chain of its fertiliser and methanol segment with the upcoming completion of its Melamine plant in Gurun, Kedah. The plant will offer product flexibility, capture higher-value opportunities, and position PCG as Southeast Asia’s sole melamine producer, reducing the region’s reliance on imports,” said PCG in its statement.
Elsewhere, PCG’s joint venture with Germany’s PCC SE in Kertih, Terengganu, has also begun operations. The facility is producing specialty ethoxylates and polyether polyols, which cater to high-growth sectors such as automotive and personal care. The plant has a production capacity of up to 70 KTPA.
Meanwhile, in Gebeng, Pahang, the company has doubled its production capacity for 2-ethylhexanoic (2-EH) acid to 60 KTPA to support increasing demand in the synthetic lubricants and oil additives markets.
“Together, these projects are expected to increase PCG’s total production by approximately 1.8 million tonnes annually, reinforcing its long-term commitment to downstream growth and value creation,” it added.
Looking ahead, PCG expects a cautious outlook despite some improvement in commodity prices and a modest recovery in specialty chemicals demand in the first quarter of 2025, said managing director and chief executive officer Mazuin Ismail.
“In response, we are doubling down on operational and commercial excellence; focusing on safety, plant optimisation, and asset reliability to strengthen our resilience,” he said.
At the same time, Mazuin said PCG continues its stringent financial discipline and prudent capital spending.
“Our growth strategy focuses on building a robust project pipeline that responds to evolving industry dynamics, while leveraging our global innovation network to deliver cutting-edge solutions. Through these efforts, PCG remains strongly committed to long-term value creation for our stakeholders and to stay competitive in an increasingly challenging environment,” he added.
PCG closed its last financial year ended December (FY2024) in the black, despite posting its first ever quarterly loss in July-September amid forex loss on revaluation of payables and loans denominated in US dollar.
The counter fell to a record low of RM2.75 earlier this month, but has since rebounded, to close at RM3.08 on Tuesday, giving the company a market capitalisation of RM25.12 billion.