PTT cancels Malaysia venture Projects in China and Indonesia to go ahead


Investment interruptus? Not a good sign for Pengerang.

Dateline 2014-02-22, Bangkok Post:

The SET-listed PTT Global Chemical Plc (PTTGC), Thailand’s largest petrochemical producer, has decided to cancel its US$200-million petrochemical project in Malaysia due to lower-than-expected returns.

Through a joint venture with the Malaysian national oil and gas company Petronas and Japan’s Itochu Corporation, the downstream petrochemical project in Pengerang, Johor state, is set to produce polyol and poly carbonate for the automotive parts industry.

The three investment partners signed a “head of agreement” in Malaysia in May 2012.

Bowon Vongsinudom, PTTGC’s chief executive and president, yesterday said the feasibility study showed that the project has Internal Rate of Return (IRR) of less than 15%.

”That IRR is not justified under our benchmarked investment return,” he said.

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This entry was posted on Tuesday, April 1st, 2014 at 6:00 am and is filed under investment, Malaysia, Malaysian election. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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