Petronas Chemicals to decide on Gebeng plant by year-end

KUALA LUMPUR: Petronas Chemicals Bhd
expects to reach a final investment decision on its joint venture with
Germany's BASF for its plant expansion in Gebeng, Kuantan by year-end.
The
company has allocated RM3bil for capital expenditure this year and bulk
of it would be for its Sabah Ammonia Urea (Samur) project.
On
April 25, StarBiz reported BASF and Petronas Chemicals Bhd would invest
US$500mil (RM1.5bil) to expand their operations at Gebeng to
manufacture products for the global flavour and fragrance industry.
The investment would be in an integrated aroma ingredients project at their existing joint venture site.
Bernama reported on Wednesday its chairman Datuk Wan Zulkiflee Wan Ariffin
as saying on Wednesday the world-scale greenfield project was a very
important milestone for the company as it would strengthen its urea
market position in South East Asia.
The company is the fifth largest producer of urea in South East Asia with an annual production capacity of 1.4 million tonnes.
"We
target to complete the Samur project by August 2015. And, after some
commissioning and testing process, the plant would begin commercial
operations two months thereafter.
"Currently, the completion
rate is about more than 30%. Underground construction is now taking
place," he told reporters after the AGM.