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South Korea's LG Chem will start constructing a nitrile butadiene latex (NBL) manufacturing plant Malaysia next year to meet the growing demand for nitrile gloves amid the COVID-19 pandemic.
To be located at Pengerang Integrated Complex in Johor, the plant is set to start production in 2023 with a capacity of 200,000 tons of NBL per year.
LG Chem, which signed the deal with Malaysia's Petronas Chemicals, declined to provide any details, including the investment amount.
The two firms will collaborate to offer various NBL grades and applications and develop high-value-added products through research and development, and investments.
Petronas Chemicals CEO Sazali Hamzah called the partnership a strategic step in developing PCG's specialty chemicals portfolio.
The use of nitrile gloves helps in preventing the spread of COVID-19 and other infections.
The demand is at an annual average of over 10 percent and is expected to cover 70 percent of the entire latex gloves market in 2024.
