Petronas-Union Carbide deal

Petronas-Union Carbide deal

KUALA LUMPUR (DPA): The Malaysian state oil firm Petronas inked a deal yesterday with U.S.-based Union Carbide Corporation to jointly build and operate an integrated chemicals complex aimed at turning Malaysia into a regional petrochemical center.

The 2 billion dollar complex, to be ready at northeastern Kertih town by 2001, will be the region's first totally integrated complex covering production of raw material to shipments of finished products, company officials said.

The deal covers three separate projects in Kertih in Terengganu state and a derivatives plant to supply feedstock for detergents, paints, cosmetics, textiles and adhesives.

Hassan Marican, Petronas chief executive officer, said the company had entered into about 15 billion ringgit worth of joint ventures over the past two years to develop the domestic petrochemical industry, with firms such as Germany's BASF and Japan's Idemitsu.