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March 29, 2021 12:58 PM

Petronas, LG Chem awarded $132 million contract for NBR latex plant construction

European Rubber Journal Report
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    DL E&C
    Pengerang integrated complex in Johor.

    SEOUL—Korean construction and petrochemicals engineering company DL E&C has been awarded a $132 million contract to build a nitrile butadiene rubber latex (NBL) plant in southeastern Malaysia, the company announced March 25.

    A joint venture project between Korea's LG Chem and Malaysia's Petronas Chemicals Group, the plant will be built at the Pengerang integrated complex in Johor and will produce 200,000 metric tons per year of NBL.

    DL E&C has been commissioned to carry out the design, procurement and construction of the factory and aims to break ground on the project in the middle of the year. Construction is expected to be completed in the first quarter of 2023.

    In August last year, Petronas and LG Chem announced the joint partnership, which they said was in response to growing global demand for nitrile rubber gloves.

    The partners also aim to 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," the partners announced last summer.

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