Hengyuan Refining looks for options to export to China

KUALA LUMPUR - Hengyuan Refining Company, previously known as Shell Refining Company before it was acquired by a Chinese company from Shell, is looking for options to export to China.

The refiner would leverage the knowledge of its major shareholder, China's state-owned Shandong Hengyuan Petrochemical in the Chinese market to find the right customers there, Hengyuan managing director and executive director Maarten Stals told reporters after the group's annual general meeting and extraordinary meeting on Wednesday.

Hengyuan Refining Company's complex oil refinery in Port Dickson is the second largest refinery in Malaysia. The refinery has a licensed production capacity of 156,000 barrels per day. Currently, about 90 percent of the group's refined products and liquefied petroleum gas are sold in Malaysia. Singapore is the group's major export market, accounting for about 10 percent of the group's revenue.

Meanwhile, Maarten is optimistic on the group's outlook following the management transition as the group is looking for more strategic opportunities with the strong support from Shandong Hengyuan Petrochemical.

"I am quite optimistic in the sense that our people are really engaged after the transition. They are positive about the (management) changes," Maarten said, adding the company is also seeking to reduce its material cost through its Chinese shareholder.