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The plant is the company’s first outside South Korea
30/07/2015
Hu-Chems US$1bn plant is first in Malaysia
Next phase planned as state eyes downstream growth
Adam Duckett
SOUTH KOREA’S Hu-Chems Fine Chemical will invest US$1bn in a new plant to produce ammonia, nitric acid and ammonium nitrate in Bintulu, Malaysia.
The plant, the company’s first outside South Korea, will produce up to 600,000 t/y of ammonia, 400,0000 t/y of nitric acid and 200,000 t/y of ammonium nitrate.
“The plan includes the capacity to expand production up to a million tons of ammonia. The company will select a construction contractor within the first half of next year, with a plan to complete construction by 2018 and start commercial production in the first half of 2019,” Hu-Chems said in a statement.
The company is already planning for a second phase for the project, securing adjacent land that could see a further US$1bn invested in building downstream production capacity for polyurethane, synthetic fibre and fertiliser.
Chief minister of Sarawak state Tan Sri Adenan Satem said the investment is a key step in adding value to Sarawak’s natural resources by moving downstream and making Bintulu a petrochemical hub in Malaysia.
“This is important because Sarawak contributes 26% of the national petroleum production and 56% natural gas production,” Adenan said, according to The Star newspaper.
He added that Malaysia’s prime minister Datuk Seri Najib Tun Razak has confirmed that state oil firm Petronas will supply the natural gas needed to feed Hu-Chems’ project.
“Therefore, I want Petronas to conclude the master agreement with the state government on the supply of natural gas for both power and non-power sectors and to expedite signing the gas supply agreement (GSA) with Hu-Chems,” said Adenan.
