H&R GmbH Renews Commitment in Malaysia with Additional Investment of USD 48 Million

Nov 2021

German company Hansen & Rosenthal (H&R) Group has announced that it will invest MYR 200 million (USD 48 million) in a specialty manufacturing plant in Lumut, Perak. H&R is the leading global sustainable refiner and marketer of specialty plasticizers, extender oils, softeners, and waxes.

The company plans to establish a new entity known as H&R Chempharm Asia Sdn Bhd in Malaysia. The entity will focus on the production of environmentally-friendly plasticizers for tire and rubber applications as well as technical and medicinal white oils for food, pharmaceutical, cosmetics, and polymer applications. It will also introduce bio-based products. A total of 70 new jobs is expected to be created.

CEO and Chairman of the Executive Board of H&R Mr. Niels H. Hansen said that the investment decision was strengthened by the strategic direction and vision of the Malaysian government for a carbon-neutral economy, as it aims to contribute to sustainable growth, focusing on de-fossilization. Malaysia is also centrally located in Southeast Asia, and is a sustainable manufacturing hub with rich resources, in both mineral and renewable feedstock. H&R intends to develop a hybrid business model in its project in Lumut to transition production of mineral-based products to renewable specialties, using locally sourced feedstock to supply to its global customers who are producing in the region.

The construction of this facility is expected to begin in March 2022, followed by commencement of production in early 2024. The project will tentatively be carried out in three phases, with a designed capacity of 150,000 tons per annum. Phase I and Phase II will be dedicated to the production of specialty plasticizers, white oils, and wax emulsions from mineral, synthetic and renewable resources; Phase III will focus on the production of renewables through uniquely designed synthesizing technologies. Currently, H&R has two existing facilities in Malaysia, namely H&R Malaysian Sdn Bhd in Port Klang, Selangor and H&R Wax Sdn Bhd in Batu Caves, Selangor. These facilities have been in operation since 1990, producing wax specialty emulsions as well as undertaking marketing and distribution activities of various specialty oils and waxes.

(Sources: Malaysian Investment Development Authority; The Star)

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