18 JULY 2013www.thesundaily.my
Press Metal aluminum plant could stay shut for 3-6 mths
Edited by : AL CIRCLE
2 min read
Press Metal Bhd's aluminum smelting plant in Malaysian Borneo could stay shut for three to six months after a six-hour power outage on June 27, a company official.
"We are assessing the impact," the official said on Wednesday. "We still have another plant (in Samalaju) up and running to meet customer orders."
Press Metal Sarawak Sdn Bhd, a unit of Kuala Lumpur-listed Press Metal, suffered the sudden shutdown at its Mukah plant, which led to a significant drop in temperature in production pots, the company said in a local stock exchange filing early this month.
The unexpected shutdown of the Mukah plant led Malaysian Rating Corp Bhd to downgrade Press Metal's outstanding RM317.5 million redeemable secured loan stocks with detachable warrants to BBB from A-.
Press Metal's Mukah plant has a smelting capacity of 120,000 tonnes per year, while its Samalaju plant has 320,000 tonnes.
"Press Metal would still have sufficient operating cash flow should the Mukah plant be closed for six months," AmResearch said in a research note to clients on July 5.
The research house maintained 'buy' on the firm with a fair value of RM3.60 per share. The firm remained unchanged at RM2.38 per share at 0215 GMT, while the benchmark stock index rose 0.06%.
"We are assessing the impact," the official said on Wednesday. "We still have another plant (in Samalaju) up and running to meet customer orders."
Press Metal Sarawak Sdn Bhd, a unit of Kuala Lumpur-listed Press Metal, suffered the sudden shutdown at its Mukah plant, which led to a significant drop in temperature in production pots, the company said in a local stock exchange filing early this month.
The unexpected shutdown of the Mukah plant led Malaysian Rating Corp Bhd to downgrade Press Metal's outstanding RM317.5 million redeemable secured loan stocks with detachable warrants to BBB from A-.
Press Metal's Mukah plant has a smelting capacity of 120,000 tonnes per year, while its Samalaju plant has 320,000 tonnes.
"Press Metal would still have sufficient operating cash flow should the Mukah plant be closed for six months," AmResearch said in a research note to clients on July 5.
The research house maintained 'buy' on the firm with a fair value of RM3.60 per share. The firm remained unchanged at RM2.38 per share at 0215 GMT, while the benchmark stock index rose 0.06%.
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