ACG to build RM100 mln LPG cylinder manufacturing plant

KUALA LUMPUR: Astana City Group Sdn Bhd (ACG) will build the first liquefied petroleum gas (LPG) composite cylinder manufacturing plant in Malaysia, which will double as an export hub to Asian markets.

Managing director Nik Mohd Fareez Nik Ahmad Azman said the construction of the RM100 million plant, a joint-venture with South Korea’s Hyundai Group and PAP Thailand Ltd, was expected to begin in May.

“The construction of the plant will be the first phase of the company’s long-term plan for the next five years. For the second phase, ACG will develop an LPG storage hub with a 60,000 to 180,000-tonne capacity in Melaka to complete its long-term plan,” he told reporters after the launch of the company’s 14 kg LPG composite gas cylinder yesterday.

Nik Mohd Fareez said the new cylinder, to be marketed under the ACGas brand, would give consumer more choices on the type of cylinders to be used.

He said the composite cylinder was produced with technology developed by the Hyundai Group through its subsidiary, Hyundai BS&E Co Ltd.

Nik Mohd Fareez said ACG would be the seventh operator involved in the marketing of LPG in Malaysia and the company was given LPG distribution subsidy from the Ministry of Finance on November 2018.

Meanwhile, he said the newly launched cylinder offered many benefits to consumers.

“The cylinder emphasises on safety. It has no risk of exploding and is lighter and easily carried. Users can also see the volume remaining in the cylinder,” he added. — Bernama