Petronas Chemicals remains bright-eyed on China market

PETALING JAYA: Petronas Chemicals Group Bhd (PetChem) says hiccups in China due to the Covid-19 pandemic-led shutdowns are not expected to dampen the performance of its key market.

PETALING JAYA：Petronas Chemicals Group Bhd（PetChem）表示，中国因Covid-19大流行导致的停产预计不会影响其关键市场的表现。

Its managing director and CEO, Mohd Yusri Mohamed Yusof, disclosed that the group projects the world’s second largest economy to continue to grow at around 8% this year and its demand for PetChem’s products will remain.

其董事总经理兼首席执行官 Mohd Yusri Mohamed Yusof 透露，该集团预计世界第二大经济体今年将继续以 8% 左右的速度增长，其对 PetChem 产品的需求将保持不变。

“From the perspective of Covid-19 lockdown that is happening in China, we are managing this by distributing to other ports and to channel products to other areas outside the affected area,” he told the media in a virtual briefing following the group’s AGM yesterday.

“从在中国发生的 Covid-19 封锁的角度来看，我们正在通过向其他港口分发产品并将产品输送到受影响地区以外的其他地区来管理这一点，”他在昨天集团年度股东大会后的虚拟简报中告诉媒体.

“We believe China will continue to remain a key market for us.”

“我们相信中国将继续是我们的关键市场。”

According to the group’s annual report, the Chinese market contributed 16% towards its top line last year.

根据该集团的年报，去年中国市场贡献了 16% 的收入。

On the ongoing Russia-Ukraine conflict, Yusri said the situation has created some instability in the feedstock prices, particularly gas. He noted that the prices of products derived from gas, such as urea, have skyrocketed since the first quarter of this year.

关于持续的俄罗斯-乌克兰冲突，尤斯里表示，这种情况导致原料价格出现一些不稳定因素，尤其是天然气。他指出，自今年第一季度以来，尿素等天然气产品的价格飙升。

In 2021, the average price of the petrochemical stood at US$513 per tonne, more than double the preceding year’s average of US$251 per tonne.

2021 年，该石化产品的平均价格为每吨 513 美元，是上一年每吨 251 美元的平均价格的两倍多。

However, the PetChem managing director/CEO believes the elevated prices will be temporary.

然而，PetChem 董事总经理/首席执行官认为，价格上涨将是暂时的。

 “Currently, we are benefiting but it will not be a norm and will stabilise over time.”

“目前，我们正在受益，但这不会成为常态，并且会随着时间的推移而稳定下来。”

With regard to Malaysia’s transition to an endemic phase of the Covid-19 situation this year as well as its overall outlook for 2022, Yusri outlined that PetChem remains cautious in view of the rising oil and commodity prices as well as geopolitical tensions that may impact the global economy.

关于马来西亚今年向 Covid-19 流行阶段的过渡以及 2022 年的总体前景，Yusri 概述说，鉴于石油和大宗商品价格上涨以及地缘政治紧张局势可能影响马来西亚，PetChem 仍保持谨慎态度。全球经济。

Yusri stated that the group will continue its operational and commercial excellence, cost optimisation efforts and pursue growth opportunities in 2022.

Yusri 表示，该集团将在 2022 年继续其卓越的运营和商业、成本优化工作并寻求增长机会。

“We are confident that our solid fundamentals will enable us to maximise opportunities while navigating uncertainties in a post-pandemic world, while continuing to create sustainable value for all our stakeholders,” he said.

“我们相信，我们坚实的基础将使我们能够在大流行后世界中驾驭不确定性的同时，最大限度地利用机会，同时继续为我们所有的利益相关者创造可持续的价值，”他说。

At the briefing, PetChem said its wholly owned subsidiary, BRB International, strengthened its presence in the region as a key silicone manufacturer with a new silicone blending facility in Gebeng, Pahang, which has an annual capacity of 8,000 tonnes. The facility will allow it to have a diverse product range, enabling it to enlarge its specialty portfolio and gradually expand its product offerings to its customers.

在简报会上，PetChem 表示，其全资子公司 BRB International 加强了其在该地区作为主要有机硅制造商的地位，在彭亨州 Gebeng 设有新的有机硅混合设施，年产能为 8,000 吨。该设施将使其拥有多样化的产品范围，使其能够扩大其专业产品组合并逐步扩大其向客户提供的产品。

Additionally, PetChem recently achieved final investment decision to build a melamine plant in Gurun, Kedah, potentially making it the sole melamine producer in Southeast Asia.

此外，PetChem 最近做出了在吉打州 Gurun 建立三聚氰胺工厂的最终投资决定，这可能使其成为东南亚唯一的三聚氰胺生产商。

As for the group’s Pengerang Integrated Complex (PIC), Yusri said it is now in the final stage of start-up readiness, which provides another platform to strengthen its position in basic and specialty chemicals.

至于集团的Pengerang综合综合体（PIC），Yusri 表示，它现在处于启动准备的最后阶段，这提供了另一个平台来加强其在基础和特种化学品领域的地位。

“We expect to commence start-up in the second quarter of 2022. With PIC, we will increase our production capacity from 12.8 million up to 14.6 million tonne per annum.”

 “我们预计将于 2022 年第二季度开始投产。有了 PIC，我们的年产能将从 1280 万吨提高到 1460 万吨。”

On the merger and acquisition front, which PetChem has disclosed is one of its growth levers for this year, Yusri stated that it has identified several targets and is working on them and will announce the progress once things have firmed up.

在并购方面，PetChem 已披露这是其今年的增长杠杆之一，Yusri 表示已确定几个目标并正在努力，一旦事情确定，将宣布进展情况。