Malaysia’s PCG reaches final investment decision to acquire MA plant

SINGAPORE (ICIS)–PETRONAS Chemicals Group (PCG) has reached a final investment decision (FID) to acquire the maleic anhydride (MA) plant in Gebeng, Malaysia, from BASF PETRONAS Chemicals (BPC), the producer said on Tuesday.

The MA plant will now be operated by PCG’s subsidiary, PETRONAS Chemicals MTBE, following the acquisition, it said in a statement.

The MA plant had earlier been closed by BPC after a product portfolio rearrangement exercise that resulted in the permanent shutdown of its butanediol (BDO) and derivatives facility.

Financial details of the deal were not disclosed.

PCG plans to upgrade the plant to produced refined MA by the second half of 2025, it said in a statement.

The acquisition will allow PCG “to produce MA to meet rising demand from customers in Asia-Pacific and Indian subcontinents while exploring potential opportunities in European and Middle Eastern markets,” PCG chief executive Mohd Yusri Mohamed Yusof said.

“The plant will enable future integration of MA specialty chemical derivatives with both our subsidiaries Perstorp and BRB to deliver innovative solutions, along with possible synergies with other MA downstream manufacturers in Malaysia,” added Yusri.

MA is mainly used in the production of unsaturated polyester resins, paints, and food flavouring.