Southeast Asian Press Metal Aluminium has announced its Samalaju Phase 3 facility will soon become operational. The company has taken this decision to make the most of the rising spot aluminium prices in Q4.
Press Metal Aluminium missed its earlier deadline to complete phase 3 expansion by July. But with Samalaju Phase 3 becoming operational soon, the company will be able to capture the upside in the LME aluminium spot price against the hedged sales proportion at $2,050/mt in 2021, reported local media.
The company’s smelting capacity at Press Metal Bintulu in Malaysia is likely to increase by 1mn mt after the expansion.
The company has also said that its Bintan alumina refinery will also become operational soon.
Additionally, the smelter has recently announced a profit of RM256mn, in Q2 2021, in line with 33.6pc and 36.8pc of the full-year estimate.
Press Metal is the supplier of aluminium products for the automotive and aviation sectors with plants in Klang, Malaysia and Foshan, China. It has an extrusion capacity to produce 210,000mt per year. The company’s Chinese subsidiary has a production capacity of 160,000mt and is an exporter of aluminium products.
Press Metal started its smelting operations in 2005 in Hubei, China, and Mukah Sarawak, Malaysia. The plants produce ingots, wire rods and primary foundry alloys.