PETRONAS Chemicals Group Berhad (PCG), the petrochemical arm of PETRONAS, and ExxonMobil have signed a memorandum of understanding to assess the potential for large-scale implementation of advanced plastic recycling technology to help create a circular economy for plastics in Malaysia. The companies will also evaluate opportunities to support improvements to plastic waste collection and sorting in the country.

Representing PCG at the signing was Ir. Mohd Yusri, Managing Director/Chief Executive Officer, and for ExxonMobil, Dave Andrew, Vice President of new market development.

“PCG has been continuously exploring and implementing innovative technologies to develop sustainable solutions demanded by its customers,” said Ir. Mohd Yusri. “This collaboration is yet another significant step towards the transition into a circular economy on the back of increased demand for circular products and signifies our commitment to use recycled raw materials in the chemical industry.”

“Advanced recycling plays an important role in meeting the growing demand for circular products, while helping to address the challenge of plastic waste,” said Andrew. “Leveraging new technologies and the expertise of both of our organizations, we hope to accelerate a more circular economy for plastics in the region.”

The agreement builds on a long-standing relationship between ExxonMobil and PETRONAS that has seen multiple successful collaborations and business ventures in Malaysia and abroad.

ExxonMobil plans to build approximately 500,000 metric tons of advanced recycling capacity at its integrated manufacturing facilities around the world by year-end 2026. At its proprietary Exxtend technology at its advanced recycling facility in Baytown, Texas, ExxonMobil has processed more than 5,000 metric tons of plastic waste since the facility started up in 2021, and is on track to complete large-scale expansion of the facility later this year. The company is assessing additional sites for advanced recycling in the U.S., Canada, Europe and Singapore, and collaborating with Plastic Energy to build an advanced recycling plant in France.