21 February 2018

CMAN Showed Its Lime Production Facilities at Kangkoi and Tubkwang Quarry. Commencing Operation of a New Kiln (KK6) to Expand Its Capacity and Aiming to Become Among the World’s Top 10

Chememan PLC. (SET: CMAN), Thailand’s largest lime and lime derivative chemicals producer and distributor, showed over 230-rai of its lime factory at Kangkoi and Tubkwang quarry, which contains ultra-high calcium limestone, following the commencement of operation of its new kiln (KK 6). The Company has also joined hands with partners to operate lime production plants in 2 locations of India with expected commencement in 2019, adding lime production capacity to 1 million tonnes per year and would place CMAN to be among the world’s top 10 lime producers. Chief Executives noted that CMAN has put emphasis on the minimizing negative impact to the environment for sustainable growth.

Mr. Suwat Tunlayadechanont, the Deputy Chief Executive Officer of CMAN, Thailand’s largest lime and lime derivative chemicals producer and distributor, revealed that CMAN has expanded its footprint domestically and internationally to place it to become one of top 10 producers of lime and lime derivative chemicals, while promoting sustainable growth under good corporate governance. In the past January, CMAN has started its new kiln (KK 6) at Kangkoi, which raise lime production capacity to 900,000 tonnes per year. At the same time, CMAN is pursuing joint ventures with two local partners in India to build two lime production facilities in the port cities of Visakhapatnam and Tuticorin, with commercial operations set to begin in 2019. This expansion will increase CMAN’s combined total production to 1 million tonnes per year – reaching its planned target.

Currently, CMAN is already the largest lime producer and distributor in Thailand and is the leading producer in Asia from its 3 production bases in Saraburi province for limestone and quicklime production, and Rayong province for hydrated lime production. CMAN is the only lime company in Thailand that possesses both lime production plants and a mining concession for lime and limestone production at Tubkwang quarry with 230 rai, 1 ngan, 41 square meters from the Ministry of Industry, which is valid for 25 years (June 2015 – June 2040). The quarry contains more than 115 million tonnes of mineable reserves containing ultra-high calcium limestone (as at October 2016).

“Geologically, Tubkwang quarry has massive amount of ultra-high calcium limestone, which is very difficult to find and gives CMAN competitive advantages in terms of quality of raw materials and better cost control for the production of quicklime. Moreover, the quarry is only 4-kilometer away from Kangkoi factory, making us better off other local lime producers without the mining concession” said Mr. Suwat.

The Deputy CEO of CMAN added that lime is a vital element of many things around us. Lime is made from extracting limestone from a quarry and heating limestone at high temperature in a calcination process to transform into quicklime. Quicklime can also be further processed into hydrated lime through a hydration process. CMAN offers its products to a wide range of industries, including many consumer products. For example, in sugar industry - lime is used to remove impurities from raw sugar and white sugar, in construction and construction materials industry - lime is used as raw material in making cement, bricks, and other construction materials, in metal and non-metal industries, lime is used to adjust acidity of wastewater and used as a chemical in mineral dressing process, just to name a few.

“At our quarry and each of CMAN’s plant, we put workplace safety and environmental conservation at the top priority. CMAN fully complies and employs many protective measures in accordance with the EIA in many area of work starting from production process up to delivery to minimize negative impact to the environment and surrounding community, which at the end of the day, creates sustainable harmony among the company and people living nearby” said Mr. Suwat.

Mr. Wutthichai Tankuranand, Chief Finance Officer said that CMAN has a strong financial structure to support business expansion both domestic and overseas in response to growing demand for lime products from various industries. Currently, the Company is in the process of being listed in the SET to raise funds to expand lime production in Thailand and overseas, repay bank loans and as working capital.

As for the 9-month financial performance between January – September 2017, CMAN generated total income of 1,633 million Baht, or 12% increase year over year, which was due to an increase in number of long-term contracts with many major customer. Currently, revenue from domestic and export sales are almost equal, with international markets cover more than 20 countries in Asia, Australia, and Africa