Kelington inks 30-year land lease agreement with Terengganu state govt

• Kelington chief executive officer Raymond Gan said the parcel of land’s convenient proximity to the group’s LCO2 manufacturing plant will streamline operations in the future.

KUALA LUMPUR (March 20): Kelington Group Bhd’s unit has inked a land lease agreement with the Terengganu State Economic Development Corporation in a move to support the group’s expansion in the liquid carbon dioxide (LCO2) manufacturing segment.

Kelington, through its 90.71% owned subsidiary Ace Gases Sdn Bhd, signed the agreement on Wednesday to lease a parcel of land measuring 130,678.86 sq feet in Kerteh for an initial term of 30 years, with a further 30-year extension option, starting Feb 1, 2024 to Jan 31, 2084.

Kelington chief executive officer Raymond Gan said the parcel of land’s convenient proximity to the group’s LCO2 manufacturing plant will streamline operations in the future.

“It is earmarked to support the group’s future expansion efforts within the LCO2 manufacturing segment. The additional space will enable us to increase manufacturing capacity, enhance logistics infrastructure, and construct warehouses and other supporting buildings as required,” said Gan in a statement.

The LCO2 industry is experiencing significant growth, driven by global demand for its versatile applications especially in the food and beverage sector, for carbonated drinks and food-freezing using dry ice.

With its first LCO2 plant achieving full capacity utilisation of 50,000 tonnes per year, Kelington said that the group’s second plant with an even larger capacity of 70,000 metric tonnes per year will bring the combined capacity to 120,000 metric tonnes per year.

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