KUALA LUMPUR: Petronas Chemicals Group Berhad (PCG) will be building a 60,000 tonnes per annum melamine plant in Gurun, Kedah, making it the sole melamine producer in Southeast Asia.
In a statement today, the company said the project is targeted to come onstream in 2024.
The project is in line with PCG's growth journey to expand into derivatives by adding value to the molecules from its existing products such as urea, methanol, polyolefins, and others.
PCG, through its wholly-owned subsidiary, Petronas Chemicals Fertiliser Kedah (PCFK), will be using the urea produced from PCFK as the feedstock to produce melamine.
PCG managing director and chief executive officer Ir Mohd Yusri Mohamed Yusof said the project is a significant milestone for the company and further strengthens its strategy of diversifying its product portfolio.
"By housing the plant within the vicinity of PCFK, we will be able to maximise the overall value through the integration of feedstock and utilities with the existing PCFK facility," he said.