A Malaysian joint venture between South Korea’s OCI Holdings affiliate OCIM and Kumho P&B Chemical has reportedly been ramping up commercial production at its Epichlorohydrin (ECH) plant operating in the Samalaju Industrial Park, Sarawak. The ramp-up is reportedly driven by a recent recovery in demand from the wind power and electric vehicle sectors.
The plant is Malaysia’s first ECH production facility, reportedly operated by joint venture OCIKUMHO, in which OCIM and Kumho P&B Chemical each hold a 50% stake. It produces 100,000 tons per year of ECH, with chlor-alkali feedstock reportedly supplied from a separate 100,000-ton-per-year facility OCI expanded. The ECH produced is reportedly used as feedstock for lightweight epoxy resins used in wind power and electric vehicle applications.
The combined investment for the OCIM-Kumho joint venture and OCIM’s expansion project is reportedly around RM 1.28 billion, though some local media covering the groundbreaking ceremony reported RM 1.7 billion, showing some discrepancy. OCI separately reportedly invested KRW 180 billion in the chlor-alkali facility. The plant broke ground in Q3 2022, underwent commissioning in Q1 2024, and entered commercial production in the second half of 2024, with utilization reportedly being ramped up recently.