Kuala Lumpur, Malaysia – Petronas Chemicals Group Bhd. (PetChem) is partnering with LG Chem Ltd. to build a nitrile butadiene latex (NBL) manufacturing plant at the Pengerang Integrated Complex (PIC) in Johor.
In a statement, PetChem said construction of the plant will begin in 2021, while production is scheduled to start in 2023.
When completed, the plant will have an annual NBL production capacity of 200,000 tons.
PetChem said the strategic partnership was timely as it occurs at a period where the demand for nitrile glove is growing rapidly.
In addition, the collaboration will create new revenue streams and unlock new markets by optimizing resources in both companies.
At the same time, PetChem and LG Chem will work together to offer various grades and new applications of NBL, as well as develop high value added products through continuous research and development and investments.
PetChem managing director/CEO Datuk Sazali Hamzah said: “We are excited about this partnership. It marks a strategic step in developing PetChem’s specialty chemicals portfolio, underpinning PetChem’s position as a leading integrated chemicals producer in Malaysia.
“It provides a compelling entry point into the growing NBL based products and enables PetChem to enhance its presence in attractive end markets, especially for personal care and healthcare, mainly in the Asia Pacific region.”
“This collaboration further strengthens the pursuit of our growth agenda, having acquired a silicone player last year. With more specialty chemicals in our portfolio, we are moving into segments with higher growth potential,” Sazali said.