Dialog Group Berhad is said to invest in a specialty chemical plant producing malic acid in Gebeng, Kuantan which will be situated within the Integrated Chemical Site operated by BASF PETRONAS Chemicals Sdn. Bhd.
This represents the oil and gas company’s first foray into the production of specialty chemicals which it said will act as a catalyst to expand its footprint in this sector.
Some context, malic acid is a specialty chemical that is mainly used as a food additive in the food and beverage industry, which has steady market demand growing along with the gross domestic product.
Its proposed development of a malic acid plant in Malaysia is in line with supporting the growing demand in the Southeast Asia region and tapping into business opportunities created by the increasing demand for malic acid worldwide. The malic acid plant in Kuantan will supply the required malic acid to major customers and distributors in Malaysia and overseas. The feedstock for the production of the malic acid will be supplied by local suppliers.
The group will undertake internally the engineering, procurement, construction and commissioning of the malic acid plant with a production capacity of approximately 12,000 metric tonnes per annum and an investment value of approximately USD80 million (RM360 million approximately)
