KUALA LUMPUR, MALAYSIA (Oct. 30, 2:15 p.m. ET) — Petronas Chemicals Group Bhd is exiting the vinyl business in Malaysia and Vietnam.
The company announced that it will stop production at the end of 2012 at its 400,000 metric ton per year vinyl chloride monomer and 180,000 metric ton PVC plant at the Kertih Integrated Petrochemical Complex in Malaysia.
The company also plans to divest its 93.1 percent interest in a 100,000 metric ton PVC plant in Vung Tau, Vietnam,.
The company said the business has not performed satisfactorily and it was highly susceptible to the cyclicality of the feedstock market.
Petronas will divert its ethylene to higher margin products within the company’s portfolio.