LB Group Co., Ltd. (Shenzhen Stock Exchange: SZ 002601), one of the world’s largest titanium dioxide (TiO2) manufacturers, formally broke ground on its Malaysian production facility on 24 September 2026 at the Gurun Heavy Industrial Park (GHIP) in Kedah. The project, carried out through its locally incorporated subsidiary LB Advanced Material Asia Sdn. Bhd., carries a total committed investment of RM1 billion (approximately USD 245 million) and is planned to reach an annual production capacity of 300,000 tonnes upon full completion.
Phase 1 of the development involves an initial outlay of RM600 million and will be followed by subsequent phases across a site spanning 60.1 acres (approximately 24.32 hectares) within the heavy industrial zone. The groundbreaking was announced via an official MIDA media release and attended by representatives of MIDA and the Kedah State Government.
What LB Group Is Building and Why It Chose Gurun
LB Group, founded in 1955 and headquartered in Jiaozuo, Henan Province, China, operates an integrated value chain spanning titanium minerals, TiO2 pigment, titanium sponge, zirconium products and new energy materials. Its global TiO2 annual capacity exceeds 1.51 million tonnes, and its flagship BILLIONS™ brand serves more than 1,500 clients across coatings, plastics, inks and paper applications worldwide.
The company’s director for LB Advanced Material Asia, Liang Sun, cited Malaysia’s strategic location and heavy industrial infrastructure as the primary rationale for the site selection. Gurun’s direct connections to the North-South Expressway and the national rail network link the industrial park to Penang Port, a key export gateway for northern Malaysia. The director stated — as a company claim — that the Malaysian base allows LB Group to serve regional and global clients with greater supply chain flexibility amid shifting international trade conditions.
Key Project Figures at a Glance
| Detail | Figure |
|---|---|
| Total committed investment | RM1 billion (~USD 245 million) |
| Phase 1 investment | RM600 million |
| Site area | 60.1 acres (~24.32 hectares) |
| Location | Gurun Heavy Industrial Park (GHIP), Kedah |
| Planned annual capacity (full completion) | 300,000 tonnes |
| Projected skilled jobs created | Over 300 |
| Investor entity in Malaysia | LB Advanced Material Asia Sdn. Bhd. |
| Parent company listing | Shenzhen Stock Exchange (SZ: 002601) |
| Groundbreaking date | 24 September 2026 |
Source: MIDA media release, 24 September 2026.
Policy Alignment: NIMP 2030 and the Chemical Industry Roadmap
MIDA Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid described the investment as consistent with two national strategic frameworks: the New Industrial Master Plan 2030 (NIMP 2030) and the Chemical Industry Roadmap 2030. Both frameworks prioritise upgrading Malaysia’s position in global chemical value chains, expanding high-value manufacturing and deepening domestic supply linkages.
According to the MIDA release, the agency and the Kedah State Government have committed to jointly facilitate project implementation, build connections with local suppliers and broaden the economic benefits arising from this inbound investment. These are stated intentions at this stage; the extent of local content linkages will depend on operational decisions made as construction and production phases proceed.
What This Means for Malaysia’s Advanced Chemical Sector
TiO2 is a high-volume inorganic pigment used as a white pigment and opacity agent in paints, coatings, plastics, paper and inks. It is classified as a specialty chemical input within Malaysia’s advanced materials manufacturing segment. A 300,000-tonne-per-year facility of this scale would, upon full commissioning, represent a substantial addition to domestic chemical manufacturing output.
For Kedah specifically, GHIP is being positioned as a destination for heavy and process industries. The LB Group project is one of the larger single-investor commitments to the park and brings with it a global customer base that local logistics, packaging and industrial services businesses could potentially serve. MIDA’s stated goal of strengthening linkages with local suppliers points to a broader ambition to use anchor investments of this scale to develop supporting industries in the state.
From a national perspective, inbound manufacturing investment in advanced chemical materials contributes to Malaysia’s efforts to diversify beyond its established electrical and electronics (E&E) and petroleum-based chemical industries. TiO2 production requires access to raw titanium minerals and energy-intensive processing — both areas where industrial park infrastructure and port access are critical cost factors, making GHIP’s logistics connectivity a genuine locational advantage.
What to Watch as the Project Progresses
The MIDA release confirms the groundbreaking and Phase 1 investment commitment of RM600 million, but does not specify a timeline for Phase 1 completion or when the full 300,000-tonne annual capacity is expected to be reached. The phased development structure means the total RM1 billion figure and the full capacity target remain conditional on Phase 2 and subsequent construction decisions.
Key developments to monitor include:
- Construction milestones and commissioning timelines for Phase 1 at GHIP, Gurun
- Progress on MIDA and Kedah State Government commitments to develop local supplier linkages
- Confirmation of Phase 2 and subsequent investment tranches, which together account for the remaining RM400 million of the total RM1 billion commitment
- How the facility’s export strategy via Penang Port develops as global TiO2 trade conditions evolve
- Recruitment progress toward the stated target of over 300 skilled Malaysian jobs
The project’s primary source is the MIDA media release dated 24 September 2026, which carries the formal groundbreaking announcement and official figures cited in this article.
Illustrative photo: Titanium.jpg by Hi-Res Images of Chemical Elements / Wikimedia Commons. CC BY 3.0. Resized for display.