14 April 2016
ABOUT PETRONAS Chemicals Group Berhad
DETAILS
Subsequent to the Bursa Malaysia
announcement made on 3 November 2015
on the acquisition from
PETRONAS Refinery and Petrochemical Corporation
Sdn Bhd (PRPC),
a wholly owned subsidiary of
Petroliam Nasional Berhad (PETRONAS),
the entire equity in three (3) companies, namely
* PRPC Glycols Sdn Bhd,
* PRPC Polymers Sdn Bhd and
* PRPC Elastomers Sdn Bhd
("Project Companies"), which are part of
the Refinery and Petrochemicals Integrated Development
(RAPID) project in Johor Malaysia ,
PCG wishes to announce that it will not proceed
with the proposed elastomers project in RAPID.
The decision was based on a review
which was conducted
on various key aspects of the elastomers project,
including the product's market outlook
and project return on investment.
The project cancellation is expected
to improve the overall returns of PCG's investments.
As per the 3 November 2015 announcement,
the initial total projected investment cost
for the polymers, glycols and elastomers segments
was approximately USD3.9 billion
with a combined capacity of 3.5 million
metric tons per annum (mtpa).
The cancellation of the elastomers project
will result in capacity reduction of 0.35 million mtpa
and projected investment cost by USD1.3 billion.
PCG remains committed to
the rest of the petrochemical projects
that it had undertaken, namely
the polymers and glycols projects.
The cancellation of the elastomers project
is not expected to have any impact on
the commencement date
for PRPC Polymers and PRPC Glycols
which is scheduled to start in 2019
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