Set up of oxyalkylates production in Malaysia

PCC SE has established a new site for the production of alkoxylates (non-ionic surfactants and polyether polyols) in Malaysia in a 50/50 joint venture with one of Southeast Asia’s largest chemical groups, PETRONAS Chemicals Group Berhad (PCG). This joint venture is called PCG PCC Oxyalkylates Sdn. Bhd. we are expanding with core business areas in the rapidly growing chemical markets of Asia. The location of the production facilities is the strategically very favorably situated petrochemical complex operated by PCG as part of the global oil and gas group PETRONAS in Kertih in the Malaysian state of Terengganu. The image above shows an aerial view of the Kertih Integrated Petrochemical Complex (KIPC).

Joint venture

PCG PCC Oxyalkylates Sdn. Bhd. (formerly: PCC Okyalkylates Malaysia Sdn. Bhd.), Kuala Lumpur (Malaysia)

Joint venture partners

PCC SE: extensive expertise in surfactants (PCC Exol SA) and polyols (PCC Rokita SA)

PETRONAS Chemicals Group Berhad (PCG): one of the leading integrated chemical players in Southeast Asia; part of the oil and gas company PETRONAS

Location

Kertih, Terengganu (Malaysia) The site of the Kertih Integrated Petrochemical Complex (KIPC) of the PETRONAS Chemicals Group in Terengganu (Malaysia)

Site advantages

PCG’s Kertih Integrated Petrochemical Complex, Terengganu:

Secure raw materials availability (esp. ehthylene oxide)
Excellent infrastructure
Direct seaport access (competitive international logistics costs)

Projected facility

Construction of an oxyalkylate plant to produce:

Ethoxylates (non-ionic surfactants) and
Polyether polyols

Establishing a joint research and development center

Objective of PCC:

Expansion of core businesses into the growth market of Asia

Commissioning

September 2023: Commissioning started
1st quarter 2024: Qualification of first products at potential customers and first sales
2nd quarter 2024: Commissioning of the second production line of the alkoxylates production plant. This means that products based on both ethylene oxide and propylene oxide are now produced at this site and commissioning has been completed. This means that products based on both ethylene oxide and propylene oxide are now produced at this site and commissioning has been completed.

Project description

2017:

Foundation of PCC-OM as a PCC project company

2020:

50% of the shares in PCC-OM sold to PCG, joint venture established

2021:

In June 2021, the “Final Notice to Proceed” was issued to the plant manufacturer.
In July 2021, a project financing was signed with a local Malaysian bank.
In October 2021, construction officially started (groundbreaking ceremony on October 28, 2021).
November: The joint venture receives the new company name PCG PCC Oxyalkylates Sdn. Bhd.

2022:

Scheduled progress in the realization of the project. By the end of March, the overall construction progress is around 30%.
In August 2022, the Malaysian state-owned company MBI signs a letter of intent to acquire a 5% stake in PCG PCC Oxyalkylates Sdn. Bhd.

The picture of the construction site shows the construction of the two production lines for polyols and ethoxylates (non-ionic surfactants), consisting of reinforced concrete pillars as well as steel struts. The openings into which the reactors will later be installed can be seen at the top left. Progress of plant construction in August 2022: Progress of plant construction in November 2022: The picture shows the tank farm to the left. Adjacent to this is the main pipe bridge (lines for raw materials, products and energy supply). 2023: Plant construction progress in May 2023: Commissioning started in September 2023: 2nd quarter 2024 Commissioning of second production line