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# LB Group breaks ground on RM1bn Kedah advanced-materials facility
- URL: https://www.southeastasiaconnect.com/lb-group-breaks-ground-on-rm1bn-kedah-advanced-materials-facility/
- Published: 2026-09-28T12:51:37.000Z
- Updated: 2026-09-28T12:51:37.000Z
- Author: Lars Voedisch
- Tags: News

[LB Group](https://www.lb-group.com/?ref=southeastasiaconnect.com) has held a groundbreaking ceremony for its Malaysian subsidiary’s advanced-materials facility at Gurun Heavy Industrial Park in Kedah. The project represents a planned RM1 billion investment and is intended to expand the company’s titanium-dioxide and advanced inorganic-chemical manufacturing footprint in Southeast Asia, according to a [24 September release from MIDA](https://www.mida.gov.my/media-release/lb-group-commits-rm1-billion-investment-strengthening-malaysias-advanced-chemical-industry/?ref=southeastasiaconnect.com).

The site will cover 60.1 acres and be developed in phases. MIDA says RM600 million is allocated to the first phase, while the completed facility is planned to reach annual capacity of 300,000 tonnes. Those figures describe the announced project and future design, rather than capacity in operation today.

The groundbreaking is the current implementation fact. It gives the project a defined location, industrial setting and stated first-phase spend, but it does not demonstrate construction completion, production, sales or delivered supply-chain benefits. MIDA expects the project to create more than 300 skilled jobs, an expectation that should not be treated as existing employment.

Titanium dioxide is used in products including coatings, plastics, inks and paper. A facility in Kedah could deepen local advanced-chemical manufacturing and create demand around heavy-industry logistics, engineering, utilities and supplier qualification. Whether those effects materialise will depend on construction progress, commissioning, local procurement and commercial production.

LB Group cited Gurun’s highway and rail connections to Penang Port as part of its rationale for the site. That is a company-stated operating rationale, not evidence that a new export flow is already in place. The next proof points are construction milestones, commissioning dates, local supplier disclosures and actual capacity entering service.

**Source:** [Malaysian Investment Development Authority](https://www.mida.gov.my/media-release/lb-group-commits-rm1-billion-investment-strengthening-malaysias-advanced-chemical-industry/?ref=southeastasiaconnect.com).