Business

Thursday September 3, 2009

Shell MDS investing RM319mil to expand wax plant

By ELAINE ANG


PETALING JAYA: Shell MDS (M) Sdn Bhd is investing some US$90mil (RM319mil) to build a wax facility at its gas-to-liquids (GTL) plant in Bintulu.

Managing director Dick Benschop said the wax plant expansion was a key development project for Shell MDS as it would enable the GTL plant to double its current wax output.

“There is a growing market for this unique product. We will strengthen our position as a leading producer of high quality waxes,” he said in a statement yesterday.

Dick Benschop ... ‘There is a growing market for this unique product’

Shell MDS is part of the Royal Dutch Shell Group and is the owner and operator of the GTL plant in Bintulu.

A Shell group spokesman told StarBiz that construction had begun at the new wax plant after its groundbreaking ceremony on Aug 18 with completion by 2011.

“The investment will use Shell MDS’ internally generated funds and be staggered over three years,” he said.

According to the spokesman, the GTL plant had the capacity to produce 14,700 barrels of gas-to-liquid products per day at present.

“GTL waxes form a significant portion of the plant’s production currently. The sale of waxes also contributes significantly to Shell MDS’ revenue,” he said, but declined to reveal Shell MDS’ revenue figures.

Benschop said the project demonstrated Shell’s continued commitment to Shell MDS and Malaysia.

“I am pleased to share that the majority of the contracts and jobs involved in this expansion project will be awarded to local companies,” he added.

The project will involve about 30 Malaysian companies and 500 Malaysians acting as design consultants, vendors, material suppliers and construction contractors in the project team.

Since 1993, about US$1bil (RM3.5bil) has been spent on the plant sited on 40.5ha.

Shell MDS’ waxes are used in a wide range of industrial applications such as hot-melt adhesives, printing inks, packaging, fibreboards, PVC lubricants, plastic processing, candles and coatings.

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