Astana City plans RM100m Port Klang factory
KUALA LUMPUR: Astana City Group Sdn Bhd, the country’s first distributor of liquefied petroleum gas (LPG), plans to invest RM100 million to build a composite gas cylinder factory in Port Klang, Selangor.
Managing director Nik Mohd Fareez Nik Ahmad Azman said the first phase of the plant would have the capacity to produce 200,000 cylinders per month to meet demand in Malaysia and other Southeast Asian countries.
“Construction is expected to begin in May next year and it will be completed in six to nine months,” he said at the unveiling of the company’s composite LPG cylinders under the ACGas brand, here, yesterday.
Fareez said the composite cylinders would be marketed starting early next year using technology developed by Hyundai BS&C, a subsidiary of South Korean giant Hyundai Group.
“We aim to capture three per cent of the Malaysian LPG consumer market in the first year and gradually increase to 20 per cent by the fifth year,” he said, adding that the local market use of LPG totals 120 million cylinders a year.
Fareez said for a start, Astana City would import composite cylinders from South Korea until the factory in Port Klang was completed.
The company has received subsidy distribution approval from the Finance Ministry to market and distribute composite LPG cylinders in Malaysia.
Astana City was appointing district agents in Peninsular Malaysia and the nationwide exercise was expected to take 12 months, he added.
“Composite LPG cylinders are corrosive-resistant and light as they are made up of plastic and fibreglass compared to traditional iron cylinders. Through a litelight feature, users can see the LPG content benchmark,” he said.
Fareez said the LPG composite cylinders were also equipped with “RFID Smart Valve”, which could deter subsidy fraud and smuggling.