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Malaysian oil giant shuts down petrochemical plants
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Malaysia's state-run oil giant Petroleum Nasional Bhd (Petronas) shut down some of its petrochemical plants in the country due to a global slump, a local newspaper reported on Thursday.

Petronas had shut down indefinitely several petrochemical plants in Kertih, Terengganu and Gebeng, Pahang as demand for polymers fell sharply due to a slump in overseas factory orders, The Star said.

Petronas Chairman and Chief Executive Officer Hassan Merican Wednesday said the materials were used to produce consumer goods and hence would be the first to get hit in a global slump.

Some of these plants manufactured polymers, or resins, or processed polyethylene, which was used in manufacturing plastic packaging, automobile parts and food wrappings, he said.

Hassan also denied that Malaysia had signed gas deals worth 14 billion U.S.dollars with Iran, saying Petronas was not involved in any gas deal with Iran, according to the daily.

Petronas has joint ventures with some British and German companies in Kertish and Gebeng, the daily said.

BASF, a German chemical company which had shut down 80 plants worldwide following low demand for its products, operates 12 plants in Malaysia under a joint venture with Petronas, the daily added.

(Xinhua News Agency December 4, 2008)

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