Leading the way: TMK Chemical Bhd managing director Wong (left) with deputy chairman Leong. The company has also embarked on corporate social responsibility activities like flood relief and recycling campaigns.
PETALING JAYA: With many analysts forecasting Malaysia’s economy to improve further, TMK Chemical Bhd is likewise confident about its own prospects, as the company believes its outlook is linked to the country’s economic performance.
The group’s optimism is mirrored in its initial public offering (IPO) exercise on Monday, ahead of its scheduled listing on the Main Market of Bursa Malaysia on Dec 12, at an IPO price of RM1.75 per share.
The group, founded in 1989, is principally engaged in the provision of total chemical management comprising sourcing, processing and distribution of inorganic chemicals and value-added services, as well as the provision of chemical terminal services which encompasses bulk storage services.
The inorganic chemicals that it offers comprise acids, alkalis, salts and other chemical products.
Operating on the virtues of humility, reliability and integrity, TMK Chemical managing director Wong Kin Wah said the group had also commenced the manufacturing of other inorganic chemicals, including chlor-alkali derivatives, at its Banting Plant 1 in May this year.
He revealed that the expansion of this relatively new product line is also a strategy for the future, and it involves the construction of Banting Plant 2 to increase capacity for producing sodium hydroxide, chlorine, and other derivatives.
As background, inorganic chemicals are utilised in a wide variety of manufacturing and industrial processes across numerous industries, which include but are not limited to cleaning agents and detergents; construction; semi-conductor; glove; energy generation and fuel; environment and agrichemical; food and beverages; healthcare and pharmaceuticals; cosmetics and personal care products; plastics; pulp and paper; scheduled waste management; and water treatment industries.
At present, TMK Chemical carries a stock-keeping unit of 4,427 chemicals, comprising different types of chemicals and where each chemical type may have different derivatives, grades, concentrations, form and distribution size.
Each type of inorganic chemicals can be supplied in various derivatives, grades and customisable concentrations, and may be supplied in liquid and/or dry form according to the requirements of its customers.
Further outlining the company’s plans for the future, deputy chairman Leong Chao Seong, who was also present at the interview with StarBiz, summarised the nature of TMK Chemical’s businesses to give a clear picture of its path forward.
“In relation to our total chemical management division, we will be constructing a new processing facility in Singapore to boost chemical processing and distribution,” he revealed.
In addition, TMK Chemical’s IPO prospectus noted the group will also be setting up a new Port Klang facility for dry bulk facility to enhance chemical processing, dry bulk handling, and product improvement activities.
Of interest, he said since the company’s inception 35 years ago, TMK Chemical has evolved from primarily a product seller to a customer-centric organisation at its core, illustrated by the growth of its product and service offerings.
One of the founders of TMK Chemical is Datuk Lee Soon Hian, who remains the major shareholder of the group with a 39.6% (after IPO) stake in the company. Soon Hian is the brother of Tan Sri Lee Oi Hian and Datuk Lee Hau Hian who control conglomerate Kuala Lumpur Kepong Bhd
.
TMK Chemical said it aims to achieve the highest standards when it comes to its environmental, social and governance (ESG) ambition.
To lower its carbon footprint, the group has installed solar panels at its facilities and terminals, and will continue to do so at its premises where suitable, to exemplify its costs effectiveness as it caters to a large variety of requests and demands from its customers.
According to its prospectus, this includes continuously sourcing additional or alternative suppliers to expand its existing supply network and improve its capabilities.
On top of that, it also provides chemical processing services which entail the customisation of chemicals to achieve its customer’s product specification and customised concentrations through dissolving, blending or dilution.
TMK Chemical obtained its Environmental Management System – ISO 14001:2015 certification from the Asia-Pacific Accreditation Cooperation, British Standards Institution in 2023, which certifies it fulfills the requirements for environmental management system for the provision of marketing, production, warehousing and distribution of chemicals.
Moreover, it is also utilising electric forklifts and is in the process of exploring how to increase the number of electric forklifts in an effort to reduce its carbon footprint further.
Another part of fulfilling its ESG objectives also saw TMK Chemical embarking on corporate social responsibility activities, which included flood relief measures, its Program 3K (Kebersihan, Kesihatan, Keselamatan) Gotong Royong Madani initiative, mangrove planting and the 3R (Reduce, Reuse, Recycle) Campaign.
Leong pointed out that part of TMK Chemical’s listing proceeds will be allocated for its pursuit of possible acquisitions and investments, especially for selective acquisition of companies in the inorganic chemical industry, in order to optimise its own cost structure and expand networks.
Meanwhile, Wong explained that TMK Chemical is mindful of first securing its position in the markets it is currently in, namely Malaysia, Singapore and Vietnam.
Deputy chairman Leong said his hopeful outlook for the company stemmed from the various storms that it has weathered over its history, with the most memorable challenge being the Asian financial crisis in 1998.
Staying on that point, with the company being involved in various industries, Leong acknowledged TMK Chemical would be more resilient towards economic volatilities.
In fact, industry observers have mentioned that the second wave of industrialisation sweeping over Malaysia will further improve the group’s performance, as this would increase Malaysia’s manufacturing output due to extended demand.
The strong outlook is perhaps also illustrated by the notable fact TMK Chemical’s IPO is wholly a public issue with no offer for sale of shares by its existing shareholders.
This means that all proceeds from the exercise will go to the company.
