Two prominent figures in the aluminium industry, Malaysian business magnate Koon Poh Keong and Chinese billionaire Song Zuowen, are deepening their collaboration, as reported by Forbes. This multi-million-dollar agreement involves an exchange of ownership stakes in their respective aluminium firms, a testament to their strategic vision and commitment to the industry.
According to an announcement on June 20, 2024, Koon's Press Metal Aluminium Holdings will trade its complete 25 per cent ownership in Bintan Alumina Indonesia for a 25.6 per cent stake in Song's Nanshan Aluminium International Holdings.
Nanshan Aluminium, a subsidiary of Shandong Nanshan Aluminium, plans to spin off and independently list on the Hong Kong Stock Exchange to secure funds for future growth. The move will follow the completion of its proposed transaction with Press Metal by July 31, after which it will apply for its initial public offering.
Four years ago, Press Metal acquired a stake in Bintan Alumina to ensure a steady supply of alumina, which was crucial for its smelting operations. Nanshan Aluminium presently owns a 72 per cent indirect interest in the Indonesian company.
Bintan Alumina runs a 2-million-tonnes-per-year capacity alumina plant located on Bintan, an Indonesian island just an hour away from Singapore by ferry. The plant is within the Galang Batang Special Economic Zone and includes its power facility and private port. In response to the increasing demand for aluminium, Shandong Nanshan announced last year that it would invest $6 billion in expanding the plant by 2028.
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