TMK Chemical Doubles Down on Core Business
Non-independent executive director and deputy chairman Leong Chao Seong revealed that the company is in the early stages of evaluating acquisition targets closely aligned with its existing operations.
Evaluation of Acquisition Targets
“We are not looking to diversify but rather to integrate further within our industry,” said Leong at a press conference following TMK’s listing on Bursa Malaysia’s Main Market.
While specifics of the acquisition targets remain under wraps, it has been confirmed that the company’s focus is on bolstering its existing strengths rather than entering new markets.
Capacity Expansion
In addition to the potential acquisition, Leong said, the company is progressing with the construction of a plant slated for completion by 2026.
“Once operational, the new plant will double the current production capacity to 352,254 tonnes of chlor-alkali derivatives, which has already reached the rate disclosed in the prospectus. The plant expansion reflects our commitment to meeting growing market demand and maintaining our competitive edge,” said Leong.
Company Outlook
Leong said the company remains bullish on its growth prospects, citing Malaysia’s robust economic recovery and increased foreign direct investment (FDI) as key drivers.
“We see a strong manufacturing rebound over the next two years, supported by new factory developments and industrial activity,” he added.
Challenges and Opportunities
While remaining optimistic, Leong said, the company acknowledges challenges, particularly in scaling operations beyond its existing markets in Malaysia, Singapore, and Vietnam.
“Expansion into Indonesia is on the radar, though it will proceed cautiously,” said Leong, highlighting Malaysia’s strategic advantage amid global shifts such as the China-Plus-One strategy.
Leong noted that Malaysia’s strong demand for industrial land reflects investor confidence in the country as a manufacturing hub.
Listing Debut
TMK Chemical shares made a commendable debut on Bursa Malaysia, opening at RM1.97, a 12.6% premium over the initial public offering (IPO) price of RM1.75.
The opening price valued the chemical trading and storage company at RM2 billion. The shares closed at RM1.92 on volume of 47.49 million units.
Conclusion
FAQs
Q: What are TMK Chemical’s expansion plans?
A: The company is evaluating acquisition targets closely aligned with its existing operations and is constructing a new plant to double its production capacity.
Q: What are the company’s growth drivers?
A: Malaysia’s robust economic recovery and increased foreign direct investment (FDI) are key drivers of growth for TMK Chemical.
Q: What is the company’s outlook on the manufacturing sector?
A: The company sees a strong manufacturing rebound over the next two years, supported by new factory developments and industrial activity.
Q: When will the new plant be operational?
A: The new plant is slated for completion by 2026.