Amoco to make PTA in KL

Amoco to make PTA in KL

KUALA LUMPUR (AFP): U.S.-based Amoco Corp. said yesterday it was investing US$380 million in Malaysia to make a raw material for polyester.

Amoco's purified terephthalic acid (PTA) plant, to be built in Kuantan, central Pahang state, will have a production capacity of 500,000 tons a year.

"This facility is expected to generate revenues of about $300 million to 400 million when it comes onstream in the second half of 1996," executive vice-president James Fligg said, ahead of a ground-breaking ceremony for the plant scheduled for Thursday.

The Chicago-based corporation said it would explore with Malaysia's national oil company, Petronas, the prospects of locally producing paraxylene, a raw material for PTA.

The PTA produced in Kuantan would be sold to Malaysia's indigenous polyester industry as well as exported, officials said.