KUALA LUMPUR (July 23): BASF Petronas Chemicals Sdn Bhd’s proposed highly-reactive polyisobutene (HR-PIB) plant in Kuantan, Pahang, is expected to contribute RM300 million in export revenue to the country, the Malaysian Investment Development Authority (Mida) said.

In a statement today, Mida chief executive officer Datuk Azman Mahmud said 100% of HR-PIB is targeted for the export market.

Mida had granted approval for the plant in March 2015.

It was reported that the plant will have a total annual capacity of 50,000 tonnes of HR-PIB and is expected to start production in the fourth quarter of 2017.

HR-PIB is used for the manufacturing of high performance fuel and lubricant additives, including additives for sludge prevention.

Azman said the project will have tremendous impact not only in Pahang, but also in other parts of Malaysia as it will provide potential business opportunities to supporting industries.

“This capital intensive project which involves fully automated processes will also benefit the local workforce through the transfer of the company’s cutting edge technology and technical know-how,” he added.

He also said BASF-Petronas plans to recruit 24 highly skilled Malaysian engineers and staff to work at the plant.

BASF-Petronas was formed in 1997 as a joint venture between Petroliam Nasional Bhd’s 64.35%-owned subsidiary Petronas Chemicals Group Bhd and Germany’s BASF SE. BASF also has production facilities for HR-PIB in Germany, Belgium and China.