PCG to build Asia’s largest advanced chemical recycling plant

PETRONAS Chemicals Group Berhad (PCG) has announced its decision to build Asia’s largest advanced chemical recycling plant in Pengerang, Johor, Malaysia, with operations expected to commence in the first half of 2026. The plant, boasting a capacity of 33 kilo-tonnes per annum, will utilize Plastic Energy Limited’s patented technology to transform end-of-life plastics into pyrolysis oil, a chemical feedstock instrumental in producing sustainable plastics. This initiative aligns with PCG’s commitment to fostering a circular economy and supporting Malaysia’s Plastic Sustainability Roadmap 2021-2030.

The plant’s construction underscores PCG’s dedication to innovative solutions that not only enhance the plastics value chain but also contribute to environmental sustainability. The advanced chemical recycling facility will convert a variety of post-consumer plastic waste into TACOIL™ through Plastic Energy’s TAC™ process, a technology that heats plastics in an oxygen-free environment, converting them into hydrocarbon vapours. These vapours are then condensed into pyrolysis oil, a substitute for hydrocarbon feedstock in the production of recycled plastics.

PCG’s initiative is a significant step towards reducing plastic pollution in Asia and expanding the region’s recycling infrastructure. The plant is expected to play a pivotal role in Malaysia’s transition to a circular economy, promoting sustainable practices across the plastics life cycle. The collaboration with Plastic Energy and the awarding of the Engineering, Procurement, and Construction (EPC) contract to Mutiara Etnik Sdn. Bhd. are integral components of this ambitious project.