In its recently released 2019 Annual Report, Press Metal acknowledged the challenges that the company would face this year due to the events earlier this year that continue to plague the markets today.
Nevertheless, it is confident that its business strategy would enable the company to stay resilient.
“Our upstream investments and smelting operation expansion are the building blocks towards our future growth.
“We are confident that our strategy will enable us to remain resilient during these trying times and emerge stronger from this when the global economic environment improves,” Press Metal said.
“The year 2020 was faced with a challenging start with the prolonged trade dispute between China and the US followed by the recent Covid-19 pandemic.
“During the earlier period of the outbreak, we were hopeful that the effects can be contained but the situation turned severe and actions were taken by numerous governments to enforce quarantines, lock downs and imposed travel restrictions.
“Numerous industries including automobile, aviation and construction have been adversely affected, consequentially dampening the demand for aluminium which are prominently used in these industries.
“Although the full impact to the global economy is still unfolding, the pandemic may have deep implications if it carries on further into the second half of the year.
“However, our low-cost model will continue to provide us with some respite during this uncertain climate,” it assured.
Press Metal is principally engaged in the manufacturing and trading of both upstream and downstream aluminium products.
The upstream smelting segment is the group’s core business and is undertaken by its 80 per cent-owned subsidiaries, Press Metal Sarawak Sdn Bhd and Press Metal Bintulu Sdn Bhd (PMBTU), operating in Mukah District and Samalaju Industrial Park, Bintulu of Sarawak state.
The annual capacity of Press Metal Sarawak and PMBTU is 120,000 tonnes and 640,000 tonnes respectively.
Press Metal had also embarked on its next phase of growth with the new 15-year Power Purchase Agreement (PPA) with Syarikat Sesco Bhd, Sarawak on July 31, 2019 which would provide us long term access up to approximately 500MW of electricity for our proposed third aluminium smelting plant (Phase 3 Smelter), located adjacent to the existing Phase 1 and 2 smelting plants in Samalaju Industrial Park of Sarawak.
Upon completion of the Phase 3 Smelter with annual capacity of up to 320,000 tonnes, its total smelting capacity will increase by 42 per cent from the current 760,000 tonnes to 1.08 million tonnes.
“We envisage that our Phase 3 smelter will begin operations by early next year. This expansion will further entrench the group’s position as the largest Southeast Asia aluminium producer and a key global player in the aluminium industry.”
Source: The Borneo Post