KUALA LUMPUR (Sept 14): Petronas Chemicals Group Bhd (PetChem) announced today that it has acquired a 50% stake in Germany’s PCC SE’s Malaysian unit, PCC Oxyalkylates Malaysia Sdn Bhd (PCC-OM), marking its entry into the growing oxyalkylates market.

In a statement, it said it has recently entered into a shares sale and purchase agreement with PCC to acquire the stake.

Through this acquisition, the group and PCC plan to build an oxyalkylates facility within the Kertih Integrated Petrochemical Complex, Terengganu, to produce ethoxylates and polyether polyols.

According to PetChem, the construction of the facility is targeted to commence in 2021 while production is scheduled to begin in 2023. 

In addition, the partners also intend to establish a joint research and development (R&D) centre at PCC-OM to ensure a high level of innovation and fulfilment of individual customer requirements, said PetChem.

Commenting on the acquisition, PetChem group managing director and chief executive officer Datuk Sazali Hamzah said: “This is another milestone for PCG (PetChem) in our quest to develop the group’s specialty chemicals business segment. We are pleased to be working with PCC SE, a global surfactant player, in our first foray into the specialty oxyalkylates market, as their experience, expertise and capabilities provide a strategic fit into our growth plans. 

“We will continue to explore investing in more technologies and assets that will further expand our high-value chemicals portfolio, thus future proofing our business.”

Meanwhile, the chairman of the administrative board of PCC, Waldemar Preussner, said through this joint venture, the group is boosting the expansion of PCC's core businesses of surfactants and polyols in the growing Asian market. 

“The Kertih site is ideal due to raw materials availability and excellent infrastructure with direct seaport access, thus ensuring competitive production and logistics costs.

“This project enables us to leverage on the know-how we have gained from decades of oxyalkylates production in our facility and the new R&D centre for customers in Asia will create a pathway for expanding our product portfolio. In PCG we have found a strong strategic partner both for this investment and also for other potential collaborations in the chemical industry,” Preussner said. 

Oxyalkylates are a group of chemicals comprising ethoxylates, a non-ionic surfactant, and polyether polyols. These chemicals are used for the manufacture of a wide range of end products that include detergent, personal care products, foam mattresses and upholstery applications.
 
“Demand for these two chemicals [is] expected to grow especially in the Southeast Asia and Asia Pacific regions,” said PetChem. 

PCC, headquartered in Duisburg, Germany, is a global surfactant player with an established know-how gained over several decades in the development and production of surfactants and polyols. 

It established PCC-OM in 2017 with the intention to expand into the Asian region.