PETALING JAYA: Petronas Chemicals Group Bhd (PCG) has reached the final investment decision (FID) to construct Asia’s largest advanced chemical recycling plant with a capacity of 33 kilo tonnes per annum.
The plant, which will be located in Pengerang, Johor, is targeted to be operational by the first half of 2026.
In a statement released today, PCG said the FID announcement also saw the signing of the Technology Licence Agreement between PCG’s subsidiary and chemical recycling technology provider Plastic Energy Ltd (Plastic Energy) and the awarding of the Engineering, Procurement and Construction to engineering specialists Mutiara Etnik Sdn Bhd.
The plant will unlock plastics waste chemical recycling capabilities in Malaysia through the conversion of end-of-life plastics into pyrolysis oil or Tacoil, which can be used as chemical feedstock for the production of sustainable plastics.
“Through the advanced chemical recycling plant, we envision driving innovation across the plastics value chain while creating opportunities for all parties, from waste collectors to manufacturers, to jointly contribute to the circular plastics economy. This enables us to propel the nation’s aspiration in phasing out single-use plastics, in line with Malaysia’s Plastic Sustainability Roadmap 2021-2030, while fulfilling the growing demand from major brands for sustainable packaging,” said PCG managing director/CEO Mohd Yusri Mohamed Yusof.