BINTULU: Samalaju Industrial Park received an RM1.7 billion joint-venture investment from OCI Group and Korea Kumho Petro Chemical Group in the production of epichlorohydrin (ECH).
Deputy Premier Datuk Amar Awang Tengah Ali Hasan said the latest investment is a testament to the high level of confidence investors have in the Sarawak Government led by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
“I understand that when the facility is operational, the new plant will produce ECH through hydroelectric power with bio-glycerin and natural salts.
“ECH is an important raw material in the manufacture of epoxy used in coating applications in all industrial fields such as shipbuilding, automobiles, IT, construction and civil engineering,” said Awang Tengah.
At the same time, he mentioned that OCI Group will also expand its Chlor-alkali production, and has invested more than RM8 billion to produce solar-grade polysilicon in Sarawak, creating employment and business opportunities for locals.
He said this in his speech at the ground-breaking ceremony for ECH Project in Samalaju by OCIKumho Sdn Bhd at Samalaju Industrial Park, yesterday (Nov 2).
At the same time, in Samalaju Industrial Park, a total of RM21 billion has been invested by international investors and in turn, generated RM4.6 billion in spin-offs to the local economy.
“Despite the pandemic, Sarawak managed to attract a total investment of RM23.17 billion, with RM16.08 billion approved in 2020 and RM7.09 billion in 2021.
“With these investments, 7,800 jobs were created in 2021 as well as wages paid amounting to RM425 million in the same year.
“In 2021, Samalaju Industrial Park recorded total exports of RM13.9 billion as compared to RM9.4 billion in 2020,” he said.
The investment by OCI and Kumho, at a time of global geopolitics and economic uncertainties, is very much welcomed, said Awang Tengah.
Hence, he said these projects are in line with PCDS 2030 which encourages more development in the green and renewable industries.
“This is so that Sarawak can contribute to the national aspiration of a low-carbon and eventually carbon-neutral society by 2050.
“Besides the current expansions by investors in Samalaju and Sama Jaya in Kuching, there are several new investors who are negotiating with Sarawak Government on their proposed investments.
“They are attracted to the green hydropower potential here to produce green products such as steel, hydrogen and components for EV batteries, as the world moves towards more sustainable development.”
Awang Tengah, who is also Minister for International Trade, Industry and Investment and Second Minister for Natural Resources and Urban Development, noted that the government will continue to upgrade the infrastructure facilities in Samalaju Industrial Park to attract more quality investments.
Infrastructures such as roads, water treatment plants, substations and other facilities will be built to ensure that the industrial park can meet the needs of the investors.
“To cater for the increasing demand at the park, RECODA will undertake two infrastructure upgrading projects – to increase the water supply from 80 MLD to 200 MLD by 2025 and upgrade an existing coastal road within the park from single carriageway to dual carriageway.
“Besides this, with more sophisticated and specialised requirements from existing and new investors, the port facilities at the park would need to be expanded and upgraded with the latest and better facilities,” said the Deputy Premier.
He expressed hope that Samalaju Industrial Park evolved into a liveable industrial park with proper landscaping, township and social amenities developed to co-exist with the manufacturing industries.
“I would like to thank OCI and Kumho for making Sarawak one of your major operational hubs outside South Korea and wish you more success.”
