KERTEH, TERENGGANU, 10 April 2002 - Forming a key thrust of the government’s push to develop Malaysia into a key Asian petrochemical hub, a major world scale petrochemical plant, has gone online in Kerteh.

Located within the greater Petronas Kerteh Integrated Petrochemical Complex (KIPC), in Terengganu, the OPTIMAL petrochemical facilities are the result of a joint venture between Petroliam Nasional Berhad (Petronas), Malaysia’s national oil corporation and US-based Dow Chemical.

The facilities will produce a wide range of petrochemical products from basic feedstock of Ethylene and Propylene to intermediates such as Ethylene Oxide, Butanol, Ethylene Glycol and various Oxide Derivatives. In total, more than 15 different petrochemical families will be produced.

These petrochemicals are used in a wide variety of industrial applications, including automotive products, polyester textiles, food and beverage, packaging, water-based latex paints, oil and gas production, cosmetics, personal care, pharmaceuticals, metal fabrication and finishing, adhesives, industrial and institutional cleaning, ink and coatings.

Strategically located along the country’s petrochemical belt, the facilities took approximately three years to construct and are scheduled to become fully operational in July 2002.

The OPTIMAL facilities, sited on 90 ha (220 acres), has a total production capacity in excess of one million metric tons per year.

OPTIMAL expects to generate RM3.8 billion in annual sales through local consumption and export of its products to markets in other ASEAN countries and the Asia-Pacific region.

Furthermore, this value added exercise in downstream petroleum related activities will provide a new supply source of petrochemical products for use by local industries from automotive, manufacturing, packaging to consumer-based.

“OPTIMAL is truly a world-class, world-scale facility leveraging on the strength of both partners, Petronas and Dow Chemical,” said Robert Kisker, Chief Executive of OPTIMAL during a media plant visit of the KIPC.

He went on to say,” It is strategically located within the KIPC, having access to commercially advantaged feedstock from the gas processing plants, energy and utility supplies from the Central Utility Facility, other raw materials from adjacent plants and superior infrastructure facilities such as the Terminalling facility, port facilities, railway and roads at its door step.”

OPTIMAL employs the best manufacturing technologies and processes available from Dow Chemical, which also provides OPTIMAL with operations expertise, world-wide distribution network and market leader in the petrochemical industry.

OPTIMAL’s Health, Safety and Environment program and facilities are second to none, employing the most effective and comprehensive Responsible Care Program to protect and safeguard both the people and the environment.

With these attributes, OPTIMAL is set to become the major regional petrochemical player and a petrochemical supplier of choice with quality products, timely delivery and strong customer support.

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