LONDON (Alliance News) - Graphene NanoChem PLC Thursday said production has restarted at its Senawang speciality chemicals facility in Malaysia, which was shut down last October so that it could be significantly expanded.
The plant, which produces biofuels, and the base fluid for Graphene's graphene-enhanced drilling fluid for the oilfield services market, has been expanded to 120,000 tonnes a year, from 80,000 tonnes previously.
The performance nanochemicals and advanced materials company said it expects to ramp up production at the plant in phases, hitting full capacity production in April. It said it expects the first bulk sales of its drilling fluid by the end of the first half of the year.
In a statement, Graphene NanoChem said the plant upgrade included work on the layer esterification unit, which is expected to reduce costs substantially. It also expects to boost margins modestly by installing an upgraded conversion unit by the end of February, meaning it expects to be able to keep producing for longer periods at the plant.
Graphene NanoChem shares were up 3.2% at 107.72 pence on AIM Thursday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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