Press Metal inks PPA to secure more power for smelting capacity expansion

Malaysia-based aluminium company Press Metal Aluminium Holdings Berhad has reportedly signed a power purchase agreement with Syarikat SESCO Berhad, a unit of Sarawak Energy Berhad, on July 31, 2019, in a bid to secure more power for capacity expansion.

According to the agreement, Syarikat SESCO Berhad will provide long-term access of up to approximately 500MW of electricity to Press Metals for 15 years. Press Metal revealed in a statement that the first drawdown of 300MW would expectedly commence by October 2020, while the remaining 200MW to be made available on a reasonable endeavour basis by SESCO.

This additional access to power will enable the Malaysian aluminium company to build a third aluminium smelter in Samalaju Industrial Park, Sarawak, leading to the increase in the company’s total smelting capacity from 760,000 tonnes per annum to 1.08 million tonnes per annum.

Group chief executive officer and co-founder Tan Sri Paul Koon said the third smelter would be sharing common facilities with two of its other existing phases, and expectedly contribute to more local employment opportunities there.

He further said, "We have a proven track record of commissioning our smelters on schedule and we are confident of repeating this for our new smelter. The total investment cost of the project will be roughly similar to our previous phases and we may tap into the debt market to fund our expansion.”

Mr. Paul Koon believes in the potentiality of aluminium to replace traditional materials and expand its usage across multiple industries, contributing positively to Press Metal’s future earnings.