Nylex gets nod to double ethanol production capacity

07 Sep 2020

Nylex (Malaysia) Bhd, controlled by businessman Datuk Siew Ka Wei, has obtained the green light from the Malaysian Investment Development Authority to double its ethanol production capacity to a total of 10 million litres per year.

Ethanol is used mainly in the manufacture of sanitisers and disinfectants.

In a bourse filing today, Nylex said its wholly-owned subsidiary Fermpro Sdn Bhd will construct and invest in a new manufacturing plant to cater for the additional production capacity.

“The construction of the new manufacturing plant is estimated to cost up to RM20 million and it is expected to complete in 18 months,” it added.

The production capacity expansion will be funded by internal funds and bank borrowings.

Currently, Fermpro has an existing production capacity of five million litres per year.

Nylex said upon completion, the new manufacturing plant is expected to contribute positively to the group’s earnings and net assets per share from financial year 2023.

Nylex shares closed 0.74% or half a sen lower at 67.5 sen per share today, valuing it at RM131.18 million. A total of 188,700 shares changed hands.

Source: The Edge Markets Posted on : 07 September 2020