Press Metal to double capacity of China plant

KUALA LUMPUR: Press Metal Bhd plans to double the annual capacity of its aluminium extrusion plant in Foshan City, Guangdong Province, to 100,000 tonnes this year.

The company had a strong distribution network for its products and could build a bigger plant in China, said group chief executive officer Datuk Paul P. K. Koon.

"We are already reaching the maximum capacity of phase one and are building phase two to add another 50,000 tonnes," Koon said after Press Metal AGM yesterday.

The move would increase the capacity of company's China operations to more than twice its Malaysian capacity that now stands at 40,000 tonnes per annum.

This year, Press Metal plans to expand its distribution into new continents of North America and Eastern Europe. It already has distribution and marketing networks in Britain, Australia and China.

The company had, in January, also taken possession of the Hubei Smelting Plant with annual capacity of 90,000 tonnes of aluminium ingots.

"Discussions are still ongoing. We hope to complete everything within the year," Koon said.

Press Metal is acquiring the smelting plant via 90%-owned Hubei Press Metal Huasheng Aluminium-Electric Co Ltd.

By having this complete manufacturing cycle covering upstream to downstream processes, it would reduce dependency on import of raw materials and mitigate foreign exchange risk, Koon said.