KUALA LUMPUR: Kelington Group Bhd’s 94%-owned subsidiary, Ace Gases Sdn Bhd, has signed a RM25mil project financing facility agreement with Malaysia Debt Ventures Bhd (MDV).
Under the scope of the agreement, MDV will provide the financing facility to partly fund the group’s expansion in the manufacturing of liquid carbon dioxide (CO2), which includes the purchase of equipment and construction of a new manufacturing plant in Kerteh, Terengganu.
“We appreciate the support we have received from MDV for our expansion in the industrial gas business.
“The loan will help accelerate the construction of our liquid CO2 plant, which we expect will commence production in the second half of 2019.
“The new state-of-the-art plant will be our first major investment in the industrial gas business,” Kelington Group chief executive officer Raymond Gan said in a statement yesterday.
The group is upbeat over prospects for this business as demand for CO2 is rising, especially in the food and beverage (F&B) industries, where it is used for making carbonated drinks and for refrigeration and freezing of food. — Bernama