They received the green light from the board of the joint-venture company BASF-Petronas Chemicals Sdn Bhd (BPC).
BASF Nederland BV is a totally-owned subsidiary of German chemicals maker BASF SE in Ludwigshafen, Germany.
In a Bursa Malaysia filing, PCG said the joint-venture company would develop a citral and precursor plant complex.
The new project involves the development of a new complex that will be integrated with BPC’s existing facilities in Gebeng, which produces acrylic monomers, oxo products and butanediol. The announcement was first made in April 2013.
The investment also includes the development of a new plant to manufacture Citronellol and L-menthol. It will be developed in phases with the first plant expected to come on stream in 2016. The investment by both parties in the project will be in accordance with their respective shareholdings in BPC with BASF having a 60% shareholding and Petronas the remaining 40%.
The investment will enable the parties to meet the global growing demand in the flavour and fragrance industry, especially in Asia.
At the same time, it will also allow them to meet the globally growing demand of customers in the flavour and fragrance industry, especially in Asia.
On a broader scale, the joint investment is also part of PCG’s overall growth strategy and complements the company’s expansion strategy into specialty chemicals.