High oil prices do not dampen prospects of Malaysian petrochem maker

15-Sep-05

Spurred by robust petrochem demand, Malaysian petrochemical producer Titan Chemicals Corp Bhd does not expect its business prospects to be dampened by high oil prices. Although oil-related feedstock accounts for 85% of the cost of producing polymers, the cost is passed on by the company. Profit margin of the polymer business is not based on oil prices but on the supply and demand of polymers. As the petrochemical industry is currently going through a cyclic upswing, the supply and demand balance is looking very good Titan Chemicals operates eight plants in Pasir Gudang and Tanjung Langsat, Johor and is the first and largest integrated producer of olefins and polyolefins in Malaysia. The company produces polyethylene and polypropylene.