KUALA LUMPUR (April 18): Petronas Chemicals Group Bhd (PetChem) has approved a final investment decision for an Isononanol plant within the Pengerang Integrated Complex in Pengerang, Johor, for a total investment cost of US$442 million.
In a filing with Bursa Malaysia today, the petrochemical arm of Petroliam Nasional Bhd (Petronas) said the project is expected to come on-stream by the second half of 2019 and will be undertaken by a wholly-owned subsidiary.
"The proposed plant will have a production capacity of 250,000 tonnes per annum. The investment will mark PetChem's entry into a niche business with high entry barrier which is predominantly controlled and commercialised by technology owners for its own captive use," it added.
The group added the transaction will not have any effect on its share capital and does not have any material effect on the earnings or net assets of the group.
"The board of directors is of the opinion that the above investment decision is in the ordinary course of business and is in the best interest of the company," it added.
PetChem shares closed up 1 sen or 0.13% higher at RM7.60 for a market capitalisation of RM60.8 billion.