DIALOG Group Berhad announced that DIALOG via its wholly owned indirect subsidiary, Dialog Malic Acid Sdn. Bhd., will build, own and operate a specialty chemical plant producing malic acid in Gebeng, Kuantan, Pahang Darul Makmur, Malaysia (Project). The Plant will be situated within the Integrated Chemical Site operated by BASF PETRONAS Chemicals Sdn.

Bhd. This represents DIALOG's first foray into production of specialty chemicals and act as a catalyst for DIALOG to expand its footprint in this sector by producing high value specialty chemical products. Malic acid is a specialty chemical that is mainly used as a food additive in the food and beverage (F&B) industry, which has steady market demand growing along with the gross domestic product.

DIALOG's proposed development of its malic acid plant in Malaysia will not only support the growing demand in the Southeast Asia 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.

DIALOG will undertake internally the engineering, procurement, construction and commissioning of the malic acid plant with a production capacity of approximately 12,000 metric tonnes per annum and an investment value of approximately USD 80 million. The EPCC of the Project will commence immediately and is expected to be completed in second quarter 2026.