KUALA LUMPUR (June 30): Petronas Chemicals Group Bhd (PetChem) has teamed up with Alam Flora Environmental Solutions Sdn Bhd (AFES) to supply plastic and food waste, and evaluate potential partnership to build waste segregation facilities in Malaysia.

The two parties signed a memorandum of understanding (MoU) detailing the framework of their mutual cooperation on Thursday (June 30).

Under the MoU, AFES will supply plastic waste that consists of polyethylene (PE) and polypropylene (PP) for PetChem to produce circular products which will be used in food packaging, healthcare, and industrial applications. AFES will also supply organic and food waste for the purpose of research and development towards the potential manufacturing of high value fertiliser for sustainable agriculture.

The signing follows two MoUs that PetChem had signed with KDEB Waste Management and One Biosys Sdn Bhd for a similar collaboration earlier this year.

In a statement, PetChem managing director and chief executive officer Mohd Yusri Mohamed Yusof said the shift towards a circular economy requires action from a broad range of stakeholders, from those involved in production and manufacturing through to end users of products as well as those in the waste management industry.

"The positive participation from these organisations to collaborate in unlocking the value within the solid waste ecosystem in Malaysia, is testament to the economic and social shift within the industry in understanding the latent value hidden in waste material. With this MoU, we continue to accelerate our initiatives towards a circular economy in ensuring sustainable consumption and production of plastics,” he added.

PetChem shares closed seven sen or 0.77% lower at RM9 on Thursday, bringing it a market capitalisation of RM72 billion.