Petronas Chemicals Group Bhd has said that it is striving to up its plant utilization rate in Malaysia so as to achieve higher sales growth. The integrated producer of chemicals is targeting a capacity utilization rate of about 85%. According to the president and CEO of PCG, Datuk Sazali Hamzah, the company was showing impressive progress to this end.
Already, the operational capacity of the company has shown an encouraging uptick, with the 2014 plant utilization capacity reaching 80% as compared to 78% a year earlier. In the year ahead, the company is positive that it will be able to achieve a capacity utilization rate of up to 85%.
The head honcho of the company said that their latest plant—Sabah Ammonia Urea (SAMUR)—which is scheduled to be fully operational in 2016, will likely help the capacity utilization rate soar beyond the targeted 85%. He was speaking privately to the news organization Bernama during the 3rd edition of the Hazards Asia Pacific symposium in Kuala Lumpur.
Sazali stated that PCG has been on schedule in completing all of its scheduled turnaround activities. The majority of the company’s plants have reported operational excellence, in terms of capacity utilization and reliability. In view of these positive events, Sazali said that the focus now remains on improving unprecedented plant reliability.
This special emphasis on increased plant utilization capacity can be explained thus: The higher the utilization rate and the reliability of a plant, the lower is the cost of production per metric ton. This aspect not only helps drive sales volumes, but also helps achieve higher revenues.
Sazali also updated reporters that the company’s SAMUR project, located in Sipitang, Sabah as well as its other project – Refinery and Petrochemical Integrated Development (RAPID) which operates in Pengerang, Johor, were showing impressive performance and were on course to achieving the desired level of productivity.