Chemical Company of Malaysia Berhad Annual Report 2019

1. MITIGATE ENERGY COSTS - Co-generation or COGEN will enable us to simultaneously produce electricity and usable thermal energy from a single fuel source. This is significantly more efficient and cost effective and will help mitigate some 60% of the Group’s variable costs which are energy costs. - It also supports the national agenda of achieving 8% savings from energy efficiency by 2025. 2. REDUCE CARBON FOOTPRINT - COGEN will help reduce greenhouse gas emissions such as carbon dioxide (CO 2 ) and other air pollutants like nitrogen oxide and sulphur dioxide, thereby leading to a cleaner environment. 3. COMPLEMENT RECYCLING EFFORTS - The heat created from COGEN can be captured and recycled to provide hot water or steam for other uses such as the heating or cooling of production facilities. To this end, we have set our sights on catering to the core industries such as the oleochemicals, petrochemicals, water treatment plant and rubber glove industries. As manufacturers from China begin to look increasingly at Malaysia to set up their base of operations, they will require caustic soda as a fundamental ingredient in their production process. This too augurs well for us. With PGW1 running at full capacity by early 2021, we will continue to reinforce CCM’s position as a reputable supplier to industrial customers in the Southern region by leveraging on the proximity and convenience that the plant offers its southern customers. On the regional front, we are looking to grow our chlor-alkali products volume for Singapore as well as chlorine volumes for Indonesia and Brunei. Within Indonesia, we have expanded to Surabaya and are exploring chlorine and calcium nitrate opportunities in Medan. Last year, we undertook the sale of some 1,500 MT of chlorine to Indonesia and are confident of making bigger inroads there. We will intensify efforts to diversify our product portfolio by exploring opportunities on the chlorine or caustic soda derivatives fronts. On the trading side, we have some new product offerings by way of soda ash, caustic flakes and others which are the common commodity chemicals used by our current customers. We are looking to add value to our customers by offering them a wider range of products. At the same time, we will grow our share in the calcium nitrate segment so that rubber glove players look increasingly to us to supply their needs. BENEFITS OF CCM’S NEW RM27.9 MIL COGEN PLANT 23 ANNUAL REPORT 2019 BUSINESS OVERVIEW GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION