Kelington starts production at second LCO2 plant


Kelington Group CEO Raymond Gan

KUALA LUMPUR: Kelington Group Bhd's 90.71%-owned subsidiary Ace Gases Sdn Bhd has commenced liquid carbon dioxide production at the group's second LCO2 plant in Kerteh, Terengganu.

The start of production at the plant, which has a capacity of 70,000 tonnes per year, brings the group's overall production capacity of LCO2 to 120,000 tonnes a year.

The group said CO2 waste gas sourced from the Petronas Gas Processing Plant is purified and converted into food-grade LCO2 at the plant, catering for use across diverse applications, particularly in the food and beverage sector for the production of carbonated drinks and the creation of dry ice for food freezing.

CEO Raymond Gan said the second LCO2 plant positions the group for further revenue growth at its industrial gas segment as it now has the capacity to effectively meet rising demand.

"The prospects of our LCO2 manufacturing business are promising, especially as the closure of petrochemical plants overseas due to environmental concerns have led to global shortage of LCO2, which is essential in many industrial processes.”

“Over 70% of the group’s LCO2 is currently exported, serving markets in Singapore, Australia, New Zealand, Fiji, Indonesia and the Philippines. The enhanced capacity allows us to further broaden our market footprint, both within these existing territories and into new regions," he said in a statement.

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Kelington , LCO2 , gas , manufacturing

   

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