KUALA LUMPUR (Sept 25): Dialog Group Bhd, via its wholly owned indirect subsidiary Dialog Malic Sdn Bhd, will build, own and operate a RM374.8 million speciality chemical plant producing malic acid in Gebeng, Kuantan, Pahang.

The plant, located within the integrated chemical site operated by BASF Petronas Chemicals Sdn Bhd, marks the group’s first foray into production of specialty chemical.

According to its Bursa Malaysia filing on Monday, malic acid is a specialty chemical that is mainly used as a food additive in the food and beverage (F&B) industry, and has a steady market demand.

Dialog said it would undertake the engineering, procurement, construction and commissioning (EPCC) of the malic acid plant, with a production capacity of approximately 12,000 metric tonnes per annum and an investment value of approximately US$80 million.

“Dialog’s proposed development of its malic acid plant in Malaysia will not only support the growing demand in the Southeast Asian region but also tap into business opportunities created by the increasing demand for malic acid worldwide.

“This malic acid plant in Kuantan will supply the required malic acid to major customers and distributors in Malaysia and overseas. The feedstock for the production of the malic acid will be supplied by local suppliers,” it said.

The project will also spur socio-economic development of the East Coast Economic Region (ECER) by creating job opportunities for locals during the construction and operations stage, the group added.

The EPCC of the project is expected to be completed in the second quarter of 2026, and Dialog will fund its portion of the project’s investment and working capital from internally-generated funds and/or bank borrowings, including proceeds from sukuk issuance.

Shares in Dialog closed one sen or 0.46% lower to RM2.16 on Monday, giving it a market capitalisation of RM12.20 billion.