KUALA LUMPUR—Petronas Chemicals Group Berhad and LG Chem jointly will build a nitrile butadiene latex plant in Malaysia to help meet the growing global demand for nitrile rubber gloves.
The plant will produce up to 200,000 metric tons of NBL per year. Malaysia is the world's largest exporter of rubber gloves.
Construction at the Pengerang integrated complex will begin in 2021. Production is scheduled to start in 2023, PCG said in a statement, adding that the collaboration with LG Chem "will create new revenue streams and unlock new markets by optimizing resources in both companies."
The partners, it added, will work together to offer various grades and new applications of NBL as well as develop high-value added products through continuous R&D and investments.
The partnership "provides a compelling entry point into the growing NBL-based products," according to Datuk Sazali Hamzah, PCG managing director/CEO.
PCG, he said, also will enhance its presence in attractive end-markets, especially for personal care and health care, mainly in the Asia Pacific region.
"This collaboration further strengthens the pursuit of our growth agenda, having acquired a silicone player last year," Sazali said. "With more specialty chemicals in our portfolio, we are moving into segments with higher growth potential."