KUALA LUMPUR (March 18): Petronas Chemicals Group Bhd (PCG) plans to work with KDEB Waste Management (KDEBWM), a wholly-owned subsidiary of Menteri Besar Selangor Inc, and One Biosys Sdn Bhd for the supply of plastic waste from landfills and evaluation of potential collaboration to build waste segregation facilities in Malaysia.

In a statement on Friday (March 18), PCG said the three parties have signed a Memorandum of Understanding (MoU) for the purpose.

Under the MoU, KDEBWM and One Biosys will supply plastic waste that consists of polyethylene (PE), polypropylene (PP), as well and polyethylene terephthalate (PET) to PCG for the production of circular products for food packaging, healthcare, household and industrial applications.

The MoU also covers a joint feasibility study to evaluate the commercial viability of building waste segregation facilities in the country, which will ensure effective plastic waste segregation.

PCG managing director and chief executive officer Mohd Yusri Mohamed Yusof said the transition to a circular economy requires new solutions to address the gaps in the plastic value chain — from better waste management to improving the economic viability of recycling solutions.

"This partnership is our next step towards realising our aspiration to be a solutions partner in addressing plastics pollution in Malaysia following our partnership with Plastic Energy Ltd in 2019 to establish a facility to convert contaminated, low quality, mixed plastic waste into pyrolysis oil. With this MoU, we are able to accelerate our initiatives towards a circular economy in ensuring sustainable consumption and production of plastics,” he added.

One Biosys specialises in eco-environment with specific focus on material recovery and engineering, through microbiology and nano-technology systems, ecosystem engineering products and services.

At noon break, PCG shares were down two sen or 0.21% at RM9.40 on Friday, bringing a market capitalisation of RM75.2 billion.