The plant will be located in Pengerang, Johor, and is targeted to be operational by the first half of 2026.

The FID announcement also saw the signing of a technology licence agreement (TLA) between PCG’s subsidiary and Plastic Energy Ltd and the awarding of the engineering, procurement and construction (EPC) contract to Mutiara Etnik Sdn Bhd.

In a joint statement, it said the plant will unlock plastic waste chemical recycling capabilities in Malaysia as part of PCG’s new plastics economy agenda to support the transition towards a circular economy and contribute to a sustainable plastics ecosystem.

“It will be done through the conversion of end-of-life plastics into pyrolysis oil or Tacoil, which can be used as chemical feedstock towards the production of sustainable plastics,” it said.

PCG managing director and CEO Yusri Yusof said through the advanced chemical recycling plant, the group envisioned driving innovation across the plastics value chain while creating opportunities for all parties, from waste collectors to manufacturers, to jointly contribute to the circular plastics economy.

“This enables us to propel the nation’s aspiration in phasing out single-use plastics, in line with Malaysia’s Plastic Sustainability Roadmap 2021-2030, while fulfilling the growing demand from major brands for sustainable packaging,” he said.

As at 5pm, PCG’s share price was up by seven sen (0.99%), giving it a market capitalisation of RM57.36 billion.