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KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) has signed an agreement with its joint venture (JV) company, BASF Petronas Chemicals Sdn Bhd (BPC), to acquire the 113 kilo-tonnes per annum (ktpa) maleic anhydride (MAn) plant located in Gebeng, Kuantan.

In a statement, PCG said the MAn plant was previously shut down by BPC following a product portfolio realignment exercise that led to the permanent closure of its Butanediol (BDO) and derivatives plant.

“With the acquisition, PCG will repurpose the plant by rejuvenating and upgrading the facility to produce higher quality MAn that is better suited to the food and pharmaceutical industries,” it said.

PCG is currently performing a detailed assessment, which is expected to be completed in the first quarter of 2023 and subject to final approval, the plant is targeted to be ready by the first half of 2025.

Managing director/chief executive officer Mohd Yusri Mohamed Yusof said its current integrated facility will ensure a competitive and secure feedstock supply to the plant.

“In addition, the proximity of the plant and our identified target markets within the Asia-Pacific and Indian subcontinents will enable us to provide competitive pricing to our customers,” he added.