KUALA LUMPUR: Integrated engineering solutions provider Kelington Group Bhd (KGB), through its 90.71 per cent owned subsidiary Ace Gases Sdn Bhd (AGSB), has commenced liquid carbon dioxide (LCO2) production at the company’s second plant in Kerteh, Terengganu.
The plant has a production capacity of 70,000 tonnes per year.
The latest commencement brings KGB’s production capacity of LCO2 to 120,000 tonnes per year.
At the LCO2 plant, CO2 waste gas sourced from the Petronas gas processing plant is purified and converted into food-grade LCO2, which is used across diverse applications, particularly in the Food and Beverage (F&B) sector for the production of carbonated drinks and the creation of dry ice for food freezing.
KGB chief executive officer Ir Raymond Gan said the company first ventured into LCO2 manufacturing with the commencement of the first plant, with a production capacity of 50,000 tonnes per year, in October 2019.
“Having reached its full capacity, this expansion enables us to stay ahead of the growing market demand.
“Commencement of the second LCO2 plant will position us for further revenue growth from our industrial gas segment as we now have the capacity to meet rising demand effectively,” he said in a statement.
He said the prospects of its LCO2 manufacturing business are promising, especially as the closure of petrochemical plants overseas due to environmental concerns has led to a global shortage of LCO2, which is essential in many industrial processes.
“Over 70 per cent of KGB’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,” Gan said.
In addition to the manufacturing facilities, KGB has a robust support infrastructure, including storage tanks and a fleet of vehicles.
This facilitates the secure and efficient distribution of LCO2 both domestically and internationally.
KGB’s strategic diversification into engineering services and industrial gas manufacturing ensures a balanced portfolio for long-term sustainability.
While engineering services offer project-based revenue, the industrial gas segment promises a steady, recurring income, enhancing KGB’s financial resilience and growth potential across various market conditions and sectors.
By balancing across both segments, the company can capitalise on opportunities across different market cycles and sectors.
