Envoy to Explore Areas for Korean firms to invest in Sarawak

KUCHING: Sarawak is an interesting state for Korean firms to explore, says the Ambassador of the Republic of Korea in Malaysia Dr Yu Hyun-Seok.

In view of that, he said he would explore the potential areas for the Korean companies to invest in.

“I think Sarawak is very attractive to the Korean firms because it can offer the necessary needs of foreign investors,” he said after paying a courtesy call on Chief Minister Datuk Amar Abang Johari Tun Openg at Wisma Bapa Malaysia here yesterday.

Yu said he had a very good conversation with the Abang Johari, who was also very keen to attract Korean investments in the tourism industry as well as attract Korean tourists to the state.

“So it was a very fruitful conversation with your Chief Minister just now,” he added.

He said presently South Korea’s biggest investment in Sarawak was made by two chemical companies — Hu-Chems Fine Chemical Corp and OCI Company Limited.

He said Hu-chems, a fine chemical manufacturer in Korea, was investing in a chemical plant in Bintulu.

According to a report in July 2015, Hu-Chems would invest around one trillion Korean won to build a facility in the 33,578-square metre complex that could produce 600,000 tonnes of ammonia, 400,000 tonnes of nitric acid, and 200,000 tonnes of ammonium nitrate.

Yu said the factory, which is still under construction, is expected to be completed in one or two years’ time, and would be the first ammonia-based chemical manufacturing plant in the state.

“Hu-Chems had signed a Heads of Agreement (HoA) with Petronas, where Petronas will be supplying natural gas to Hu-Chems’ plant,” he said.

As for OCI, Hu said the firm had bought some shares from the Malaysian unit of Japan’s Tokuyama Corp.

Tokuyama Corp established the Malaysian unit in 2009 to expand its semiconductor-grade and solar grade polycrystalline silicon business with the set-up of the two manufacturing plants in Samalaju Industrial Park in Bintulu.

According to reports, the company had invested US$1.99 billion in the manufacturing facilities which have a combined annual production of 20,000 tonnes.

Polysilicon is an essential raw material for solar cells to convert sunlight into electricity.

Tokuyama is a pioneer investor in Samalaju Industrial Park, which is now also home to energy-intensive industries like aluminium, ferrosilicon and manganese smelters.

Hu said aside from the two firms, several other companies in Korea also showed great interest in coming to Sarawak.

“So there will more Korean investment in Sarawak in the future,” he said.