Upgrade of Senawang Facility and Plant Shutdown

Graphene NanoChem plc

("Graphene NanoChem" or the "Group")

Upgrade of Senawang Facility and Plant Shutdown

Graphene NanoChem (AIM: GRPH), the performance nanochemicals and advanced materials company, is pleased to announce that it has commenced the upgrade process of its Senawang Chemicals Facility, scheduled to be completed by 31 December 2013 with recommissioning planned by 31 January 2014 ("Senawang Upgrade Project"). 

The completion of the Senawang Upgrade Project will achieve the following milestones for the Group:

(i) increase the production capacity of the Senawang Chemicals Facility to 120,000 tonne per annum;

(ii) enhance our feedstock processing capability in a more cost efficient manner;

(iii) improve production efficiency and optimize plant uptime, and

(iv) allow the plant to produce a broader range of high value performance chemicals;

thereby reducing overall operating cost of the Senawang Chemicals Facility and increasing margins. The Senawang Upgrade Project is a critical component of the Group's plans for growth in 2014.

The process is being managed by independent multinational project consultants, in conjunction with the Group's technology team, headed by Dr. Calvin Chok, to ensure the timely coordination of upgrade activities and to mitigate any risk of delays on project implementation. In addition, the temporary shutdown has also been planned to coincide with the periodic annual maintenance of the Senawang Chemicals Facility to further minimize the production suspension period.

The Group has taken the necessary prior measures to ensure that its contractual commitments for 2013 are met during this period.

Jespal Deol, Chief Executive Officer of Graphene NanoChem, commented: "We are very pleased to announce that the planned upgrade for the Senawang Facility is on track. We will be working hard to ensure that the planned upgrade is completed according to schedule to meet the step-up demand for our products in 2014."

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