BINTULU: The USD1 billion worth of investment by Huchems Fine Chemical Corporation in Tg Kidurong Industrial Area here marks a milestone for Huchem’s first global expansion, said Tae Kwang Group chairman Park Yen Cha.
“I personally feel that this groundbreaking ceremony is significant to both Huchems and Sarawak. Huchems are prepared to enter the international markets through this expansion into overseas markets and promise to deliver products of the highest quality,” he said during the groundbreaking ceremony of Huchems’ manufacturing plant yesterday.
He believes Bintulu will become the global hub for petrochemical industry when the chemical complex is completed and operational besides enabling Huchems’ business to expand.
Meanwhile, Ambassador of the Republic of Korea to Malaysia H.E Cho Byungjae said the establishment of the first ammonia-based chemical manufacturing plant in Sarawak is a concrete symbol of the excellent economic cooperation between Malaysia and Korea.
“They bring together Sarawak’s vast industrial land and natural resources, and Korea’s technology and expertise in petrochemical industry.
“As a win-win deal for both Malaysia and Korea, Huchems plant will contribute to strengthening Korea’s industrial ammonia production and creating business employment opportunities for the people of Sarawak,” he said.
The Huchems project, he said, fits in well with the larger context of Korea’s broader relationship with Malaysia as Korea is the fifth largest investor in Malaysia and one of Malaysia’s biggest trading partners.
Korean companies, he added, have done business in Malaysia for a long time and hope to do more with their Malaysian partners to jointly realise Malaysia’s vast potential.
“Many Malaysians and Koreans will work side-by-side in this project. Let us use this opportunity to strengthen the friendly relationship between our people and countries. Korea looks forward to even closer collaboration with Malaysia in the years ahead, to bring progress and prosperity to both our people,” said Cho.
Malaysian Investment Development Authority (Mida) chief executive officer Datuk Azman Mahmud, in a press conference, said Huchems has 14 manufacturing plants in Yeosu Chemical Industrial Park in Korea and is now expanding operation in the Asean region.
He said the selection and swift implementation of the project here was a testament to the continued attractiveness of Malaysia.
Huchems, he said, will be the first producer for ammonium nitrate in the country and once implemented the project will reduce the importation of ammonia, nitric acid and ammonium nitrate and contribute significantly to exports in the chemical products segment.
“The company’s investment will bring positive economic benefits to the country in the coming years, particularly in Sarawak in the form of high income employment opportunities for Malaysian citizens as well as increased usage of local infrastructure, financial services, information technology, utilities and logistics services for local businesses among many others,” he said.
Scheduled for completion by 2019, he said the project will provide about 400 new direct employment opportunities in highly skilled jobs, which will make up 91 per cent of the jobs created.
Once completed, the plant will produce up to 600,000 tons of ammonia, 400,000 tons of nitric acid and 200,000 tons of ammonium nitrate a year.
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.
Huchems has a plan to investigate a second project (phase 2) for its downstream industries such as polyurethane, synthetic fibre and fertiliser with the materials produced in the Phase 1 plant.
The second project will enable the vertical integration of Phase 1 produced materials. The second project for manufacturing, while improving the economies of scale, will reinforce product competitiveness and Bintulu is expected to become the hub of fine chemical industries in Southeast Asia.
Meanwhile, Azman said Malaysia still attracts foreign investment even with the Malaysian ringgit depreciating because the investors look for long term investment.
“This is among the factors that are taken into consideration before investing in Malaysia,” he said, adding among the potential investors are companies from Korea, Japan, United States and United Kingdom.-Borneo Post
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