KUALA LUMPUR, Feb 13 (Bernama) -- Dialog Group Bhd’s wholly owned subsidiary Dialog Malic Acid Sdn Bhd has discontinued its malic acid project in Gebeng, Pahang, with total capital expenditure incurred to date of RM90.7 million been written off in the second quarter ended Dec 31, 2024 (2Q FY2025).
Dialog said in a filing with Bursa Malaysia that the unit has obtained the board’s approval to discontinue the undertaking of the engineering, procurement, construction and commissioning of a malic acid project in the BASF Petronas Chemicals Complex.
In 2023, Dialog took the decision to invest in a downstream specialty chemical plant producing malic acid in Kuantan.
It said since September 2023, the price of malic acid across Southeast Asia has declined by 20-30 per cent, primarily due to oversupply.
In addition, the continued volatility and challenging global chemicals market, and the uncertain macro-economic environment, has led Dialog to make the strategic decision to discontinue this project.
“The discontinuation will affect our earnings in the financial year ending June 30, 2025,” it said.
However, it said it is not expected to have any material effects on the net assets, gearing, share capital and substantial shareholders’ shareholding of Dialog for the financial year ending June 30, 2025.
-- BERNAMA
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