Astana City To Build Composite Gas Cylinder Factory In Port Klang

KUALA LUMPUR, Dec 4 (Bernama) -- 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. 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 market demand in Malaysia and other Southeast Asian countries. "The construction of the plant is expected to begin in May next year and is expected to be completed in six to nine months’ time," he told reporters at a ceremony to introduce composite LPG cylinders under the ACGas brand here Tuesday. Nik Mohd Fareez said the composite cylinders would be marketed starting early next year using technology developed by Hyndai BS&C, a subsidiary of South Korean giant Hyundai. "We aim to capture three per cent of the Malaysian LPG consumer market in the first year and gradually increasing to 20 per cent by the fifth year," he said, adding that the Malaysian LPG consumer market totalled 120 million cylinders a year. Nik Mohd Fareez said for the start, the company would import composite cylinders from South Korea to meet local demand until the factory in Port Klang was completed. The company was also granted subsidies approval by the Ministry of Finance to market and distribute composite LPG cylinders for the Malaysian market. The company is in the process of appointing district agents starting in Peninsular Malaysia and the nationwide exercise is 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 lite-light feature, users can see the LPG content benchmark,” he said. He said the LPG composite cylinders were also equipped with "RFID Smart Valve" which could deter subsidy fraud and smuggling. -- BERNAMA