RM50mil financing for CCM subsidiary

Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.

KUALA LUMPUR: Chemical Co of Malaysia Bhd’s (CCM) wholly owned subsidiary, CCM Chemicals Sdn Bhd (CCMC), has accepted an Islamic financing facility of RM50mil from OCBC Al-Amin Bank Bhd.

The fund is to part finance its Pasir Gudang Works Plant 1 (PGW1) reactivation project.

The company said the project was expected to increase the production capacity for chlor alkali products by about 50%.

It would potentially fill in the gap in the market, which is currently met by imports, thereby increasing CCMC’s market share.

“The PGW1 reactivation project is currently in progress and is expected to be completed and commence production in the second quarter of this year,” it said in a filing with Bursa Malaysia. — Bernama