Huchems Fine Chemical, a chemical unit of Taekwang Group, will build a large-scale chemical plant in Malaysia.
Huchems held a groundbreaking ceremony in Bintulu, a coastal town in the central region of Sarawak, Malaysia, on July 29. Huchems will spend about 1 trillion won for the next three years to build a plant capable of producing 600,000 tons of ammonia, 400,000 tons of nitric acid, and 200,000 tons of ammonium nitrate in a 330,000-square-meter site. The company aims to complete the construction by the end of first half of 2019.
Huchems signed a long-term contract earlier in December last year with the Malaysian government to get steady delivery of natural gas up to 600,000 tons a year for the next 20 years. Once the plant is up and running, it will be the only Korean company with operations in ammonia. Although ammonia is one of the core chemicals in the fine chemical industry, Korean chemical companies have relied on imports for about 1.4 million tons of ammonia a year as no Korean suppliers produce it since 2000.
A Huchems official said, "The ammonia production line will be expanded up to 1 million tons. Once we start producing ammonia, the 500-billion-won ammonia market of Korea will get a stable supply of the critical chemical from us."
In the second stage of expansion, Huchems plans to spend another 1 trillion won to produce polyurethane, synthetic fibers, and fertilizer based on the chemicals it produces in the first stage. To this end, the company secured an additional land site of 500,000 square meters.