Linde Malaysia, a member of the Linde Group, will invest €30m ($35m) to expand its gas and liquid production capacities to meet growing customer demands in central Malaysia.
Linde’s announcement is the latest in a series of recent investments that Linde has made in Malaysia in the past 12 months. The company will construct and commission a new gas and liquid producing air separation unit (ASU) at its site in Hicom Industrial Estate (Hicom). The new ASU will be integrated into the pipeline supply network of existing plants which Linde operates in Bukit Raja and Hicom. The investment will enable Linde to meet forecast growth in the central Malaysian region through the next decade. The expansion project is expected to be completed by 2018.
The facility will also form the cornerstone of a renewed and expanding oxygen supply scheme to leading Japanese glass manufacturer, Nippon Electric Glass Malaysia (NEGM).
Masaya Kubo, Managing Director, NEGM, said, “Producing innovation and high-quality glass solutions demands that we maintain the strictest quality standards in our manufacturing processes and materials. For 20 years, Linde has supplied Nippon Electric Glass Malaysia with consistent and reliable gas solutions to fuel our manufacturing processes, growing together with us. We are delighted to be able to continue this relationship into the next decade.”
Rob Hughes, Linde’s Regional Managing Director, South Asia and ASEAN said, “Asia continues to be a driver of realisable and profitable growth for Linde as industrial production in the region continues to grow. Malaysia is a key contributor to our growth strategy in Asia and our track record of steady investment of over €230m ($268m) in the past two years underscores our commitment and optimism about Asia.”
Connell Zhang, Managing Director of Linde Malaysia, said the growing demand for liquid products reflects a positive outlook in the Malaysian market. He states, “There continues to be a healthy growth momentum and expansion activities across a variety of industries in the central region. Our latest investment further strengthens Linde’s position as a reliable and efficient provider of top quality industrial gases to NEGM and other customers in Malaysia.”
Available liquid product from this new investment will also serve the needs of customers from a variety of industries throughout central Malaysia, including electronics, healthcare, food and beverage, metallurgy and glass.
The expansion of Linde’s production capacity in Hicom is the latest in a series of Linde investments in Malaysia. Early last year, Linde announced plans to build an ASU in East Malaysia, expected to come online this year. Linde and PETRONAS Gas Berhad have also announced a joint venture to invest €150m ($175m) to build an ASU at the Pengerang integrated Petroleum Complex. More recently, Linde launched Southeast Asia’s first automated cylinder filling plant In Banting, Malaysia which has a maximum annual filling capacity of over two million cylinders.
According to gasworld Senior Business Analyst, James Barr, “The industrial gases business in Malaysia was estimated at over $400m in 2016, with Linde being the clear leader with a market share of around 50%. Liquid (liquid oxygen and liquid nitrogen) utilisation in central Malaysia is relatively high at around 80%. So, this new investment will provide some much-needed capacity that will be able to service the forecasted increase in demand.”