PETALING JAYA: Kelington Group Bhd , via its 90.71% owned subsidiary, Ace Gases Sdn Bhd, has entered into an agreement with Terengganu State Economic Development Corp to lease a parcel of land measuring 130,678.86 sq feet in Kerteh, Terengganu.
Under the agreement, the group will lease this parcel of land for an initial term of 30 years, with a further 30-year extension option (30+30), starting from Feb 1, 2024 to Jan 31, 2084.
Kelington chief executive officer Raymond Gan said the parcel of land is conveniently located adjacent to the group’s liquid carbon dioxide (LCO2) manufacturing plant and will facilitate streamlined operations in the future due to its close proximity.
“It is earmarked to support the group’s future expansion efforts within the LCO2 manufacturing segment. The additional space will enable us to increase manufacturing capacity, enhance logistics infrastructure, and construct warehouses and other supporting buildings as required.
The LCO2 industry is experiencing significant growth, driven by global demand for its versatile applications, especially in the food and beverage sector for carbonated drinks and food freezing using dry ice.”
Since the commencement of Kelington’s first LCO2 plant, Gan said revenue from export markets have risen consistently, fuelled by strong demand for LCO2 globally.
“With the first LCO2 plant achieving full capacity utilisation of 50,000 tonnes per year, the group’s second LCO2 plant with an even larger capacity of 70,000 tonnes per year, brings the combined capacity to 120,000 tons per year.”