Acknowledgement

YB Jimmy Puah Wee Tse
Chairman, Johor State International Trade, Investment and Utility Committee

HE Valeri N. Yermolov
Ambassador of the Russian Federation in Malaysia

Mr. Gleb Nikitin
Governor of Nizhny Novgorod Region, Russia

Mr. Aleksey Gruzdev
Deputy Minister of Economic Development of the Russia Federation 

Tuan Haji Zainor Adani
Yang Dipertua Majlis Perbandaran Pasir Gudang

Mr. Nikolay Khodov
CEO, Orgkhim Biochemical Holding, Russia

Mr. Aleksandr Volkov
Managing Director, Norman Process Oils Malaysia Plant Sdn Bhd,

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Good afternoon. On behalf of MIDA, especially Dato’ Azman Mahmud, our CEO, I am pleased to join all of you to this momentous event. Just in February last year, Dato’ Azman witnessed the groundbreaking ceremony of Norman Process Oils Malaysia Plant. Today, we are all gathered here to celebrate another significant milestone for the company - the opening ceremony of its manufacturing facility, here in Johor. We are proud that Malaysia fits into Orgkhim’s long term growth strategy for the region and is the location of choice of its investments. 

The successful implementation of Orgkhim’s first carcinogen-free rubber process oils (RPOs) project in Malaysia reflects its confidence in the strong fundamentals of Malaysia’s diversified economy. We are particularly impressed that this plant will not only produce an extensive range of safe petroleum-based extender oils, but it will also position Malaysia as one of the few players in the world to produce RPOs.

We also foresee this project will be a catalyst in boosting the development of the chemical industry in the country. It is in line with Malaysia’s aim to increase its petrochemicals output to cater to Asia-Pacific’s rising demand for premium specialty and eco-friendly chemicals. 

As of June 2019, a total of 1,502 manufacturing projects in the chemicals and chemical products industry with investments of RM58.3 billion have been implemented in Malaysia. Of this, 57% or RM33.5 billion was from foreign sources, while the balance of 43% or RM24.8 billion was from domestic investments. These projects have created a total of more than 61,600 jobs for the country. For the first half of this year, MIDA has approved an additional 38 manufacturing projects for the industry with investments worth RM1.66 billion.

This project will help to increase the profile of Tanjung Langsat Port as a hub for import and export activities. We look forward to the opportunities Orgkhim will provide for Malaysia, especially in the vicinity of Pasir Gudang through its local sourcing activities and the creation of local employment. We are pleased to note that almost 100% of the company’s finished products will be exported out to major countries, and more than 50% of the machinery and equipment for this facility has been sourced locally. 

The direct users of Orgkhim’s specialty material, especially companies in the tire and rubber industries, will indeed benefit from this project. They will be able to source for more cost-competitive raw materials and improve the quality of their output, resulting in safer and more EU compliant products that are fit for export purposes. 

Ladies and Gentleman,

Orgkhim’s presence here adds to the portfolio of companies from Russia that has invested in Malaysia. As of June 2019, a total of 8 projects with Russian participation have been implemented with a total investment of RM128.3 million. These projects have created more than 408 jobs opportunities in the country.

Besides Orgkhim, other notable Russian participation that has established their presence in Malaysia includes Purecircle, Aerospace Technology Systems Corp. and Ace Wizards. 

As Malaysia is embarking on a transformation journey to prepare for Industry 4.0 through the adoption of smart manufacturing and automation, we look forward to more investments from Russia here in the country, especially in high value-added activities. 

Recognising Russia’s strength in new growth and advanced technology, there are many potential areas for Russian companies to do business in Malaysia. These include industries such as the advanced materials & electronics; medical devices & biotechnology; optics & photonics; and ICT & aerospace. Our vibrant services sector also offers multiple ranges of opportunities such as regional establishments; education & training; healthcare; as well as tourism and hospitality. 

Ladies and Gentlemen,

We hope that the opening of Orgkhim’s new facility will be the impetus to attract more Russian companies to consider Malaysia as their investment destination of choice in this region.

Given the vibrant business environment prevailing in Malaysia, we are optimistic that Orgkhim will continue to record many more successes here. Rest assured that the Government, through MIDA, will continue to facilitate and nurture a conducive business environment for your investment to grow. 

In closing, let me extend my warmest congratulations to the management and staff of Norman Process Oils Malaysia Plant on the opening of this manufacturing facility. I wish you every success and look forward to your future expansion here in Malaysia. Thank you. 

SOURCE: Malaysian Investment Development Authority 

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Ms. Crystalle Toh
Tel : +6012 731 3493
Email: tp.nee@orgkhim.com 

Name: Ms. Surayu Susah
Director, Chemical and Advanced Material Industries Division
Tel: 03-2267 6773
Email: surayu@mida.gov.my  

--BERNAMA