Press Metal JV Firm In China To Start Ops In 18 To 24 Months

PETALING JAYA (Selangor, Malaysia), Oct 13 (Bernama) -- Malaysian Press Metal Bhd's (PMB) joint-venture (JV) with Chinese aluminium company, Sunshine Development Co Ltd (SDCL), to set up Shandong Sunstone & PMB Carbon (SSPC), is expected to start operations in 18 to 24 months from now. PMB, which will have a 20 per cent stake in the US$66.37 million (RM280 million) JV, with an option to increase it to 40 per cent, aims to secure long-term supply of one of the major raw materials, pre-baked carbon anode. Group Chief Executive Officer, Koon Poh Keong, said PMB's share would only be worth about US$7.1 million (RM30 million). (US$1=RM4.21) He said the amount was not a very significant investment compared to the benefit of a secured supply. "Sunstone has been the supplier for many years. The JV would allow PMB to be involved in the whole process of production and control of the quality. It is also a good measure to mitigate the cost in the event of the shortage of the material," he told reporters after the company's extraordinary general meeting here Thursday. Koon said the plant in China would cater to 70 per cent of the needs of the manufacturing plant in Malaysia and the rest would be outsourced from other suppliers. In the past, there had always been a shortage in supply and the spike in prices, he said. For the financial year ending Dec 31, 2016, Koon said, the company was on track to achieve its US$1.42 billion (RM6 billion) revenue target with the output it was generating, cost control and the current sustainable aluminium price. -- BERNAMA