Chemical Company of Malaysia to reactivate Pasir Gudang plant

PETALING JAYA: Chemical Company of Malaysia Bhd’s (CCM) wholly owned subsidiary CCM Chemical Sdn Bhd (CCMC) has approved the reactivation of its Pasir Gudang Works 1 plant, in a bid to grow its chlor-alkali business.
The group’s board of directors said in a Bursa Malaysia filing that the reactivation will cost the group RM68.5 million, which also includes equipment purchase and installation cost.
The project is expected to begin in the first quarter of this year and scheduled for completion in the second quarter of 2019, with a project duration of 18 months. It will be funded by a combination of internal and external funds.
“The reactivation of PGW1 is expected to increase the production capacity for chlor alkali products by about 50% and will potentially fill in the gap in the market which is currently filled by imports and thereby increasing CCMC’s market share in the chlor-alkali products,” the group said.
The move will also enable CCMC to shorten its lead time and ensure a lower cost while increasing its production capacity, while also putting it in a better position to take advantage of the current market demand.
CCM’s shares remained unchanged at RM2.16 with some 779,700 shares done.