KUALA LUMPUR (Nov 23): Petronas Chemicals Group Bhd awarded a US$482m (RM2.07 billion) polypropylene plant construction contract to a consortium comprising Italy-based Tecnimont and China-headquartered Huanqiu Contracting & Eng Corp.

Petronas Chemicals told Bursa Malaysia today that the engineering, procurement, construction and commissioning contract involved a 900,000 tonne-a-year plant within the refinery and petrochemical integrated development (Rapid) in Pengerang, Johor.

"The total bid award price is approximately USD482 million on a lump sum basis," Petronas Chemicals said.

Petronas Chemicals said Tecnimont and Huanqiu won the project on a "competitive bidding" basis.

According to Petronas Chemicals, the contract, which starts today, is due for completion on April 15, 2019.

"None of the directors or substantial shareholders of PCG (Petronas Chemicals) or persons connected with them have any interest, whether direct or indirect, in the transaction.

"The board of directors of the company is of the opinion that the above award of contract is in the ordinary course of business and is in the best interest of the company," Petronas Chemicals said.

At 12:30pm today, Petronas Chemicals shares added six sen or 1% to settle at RM6.66, for a market capitalisation of RM53.28 billion. The stock saw some six million shares done.

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