KUALA LUMPUR – Chemical Company of Malaysia Bhd’s wholly-owned subsidiary, CCM Chemicals Sdn Bhd (CCMC), has accepted an Islamic financing facility of RM50 million from OCBC Al-Amin Bank Bhd to part finance its Pasir Gudang Works Plant 1 (PGW1) reactivation project.
In a filing to Bursa Malaysia, the company said the PGW1 reactivation project was expected to increase the production capacity for chlor alkali products by about 50 per cent and 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.
The facilities would not have any material effect on the earnings of the CCM Group for the financial year ending Dec 31, 2019,” it said.
With the continuous de-gearing plan and completion of the divestment of two major non-core assets, the gearing ratio of the CCM Group is approximately 0.61 times for the financial year ended Dec 31, 2018.