Hengyuan to invest US$48m in clean air regulation project

This article first appeared in The Edge Financial Daily, on September 6, 2018.
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KUALA LUMPUR: Hengyuan Refining Co Bhd will invest US$48 million (RM199.2 million) in the clean air regulation project to be executed within its refining complex in Port Dickson, Negeri Sembilan.

In a filing with Bursa Malaysia yesterday, Hengyuan said it has approved the investment for the project, which is undertaken to ensure that the refinery’s emissions comply with the clean air regulation requirements mandated by the Malaysian regulatory authorities.

“This is done via the installation of air pollution control systems at the Long Residue Catalytic Cracking Unit and Plat-2, and an emission monitoring system on HRC’s [Hengyuan Refining Co] flue gas stacks,” it added.

The clean air regulation requires compliance by June 2019.

Hengyuan said it will finance the clean air regulation project via a combination of cash flow generated from operations and a further drawdown from an existing term loan.

Shares in Hengyuan closed 13 sen or 1.91% lower at RM6.67 yesterday, giving it a market capitalisation of RM2 billion. Year to date, the stock has fallen 59% from RM16.26.