By JASON NG
KUALA LUMPUR -- Petronas Chemicals Group, the petrochemical arm of Malaysian state
oil and gas company Petroliam Nasional Bhd, said late Monday it
will discontinue its vinyl business and cease operations by
January 1, 2013.
As a result, the company will take a charge of 560 million
ringgit ($183 million) in the fourth quarter this year to
mainly provide for decommissioning, contract termination dues
and impairment expense, Petronas Chemicals said in a statement
to the Malaysian stock exchange.
"The performance of the vinyl business has not been
satisfactory compared to the group's other businesses,"
Petronas Chemicals said, because it wasn't "closely integrated"
within its product value chain.
Petronas Chemicals has three plants - two in Malaysia and
one in Vietnam - which mainly manufactures vinyl chloride
monomer and polyvinyl chloride with installed nameplate
capacity of 680,000 tpy.
It will decommission its plant in Malaysia over the next three
years and sell its 93.1% stake in Phu My Plastics and Chemical
Company Ltd., which runs its Vietnamese factory.
Dow Jones Newswires