Press Metal plans to raise US$231 million to upgrade production capacity

Press Metal Aluminium, the Malaysian aluminium giant, ruled by Koon Poh Keong and his brothers is raising US$231 million to further facilitate the group’s output amidst deteriorating supply cycles due to the Ukraine-Russia conflict.

On 5^th April 2022, the company proclaimed that it is selling 163.4 million new shares at US$1.41 each. The company is planning to upgrade its aluminium extrusion and smelting operations, after paying off some existing debts with the proceeds from the share sale. They are relying on the shares to fund working capital for the company during this phase of economic imbalance due to the war.

These developments will amplify Press Metal’s potential. The company accomplished the construction of the third phase of its smelting facility in the Samalaju Industrial Park in Sarawak, Malaysia, which will definitely up the group’s annual smelting capacity to more than 1 million tonnes. However, in the upcoming days, Press Metals would be ready with all the required upgrades for better and faster production of aluminium products.  

Koon Poh Keong, the CEO of Press Metal Group stated during the announcement of company 2021 results in the previous month, “Demand for low carbon aluminium in modern applications is expected to rise in industries such as automotive and solar energy.”

The enterprising demand surge for aluminium doubled Press Metal’s net profit in 2021 as revenue shot up by 47% to 11 billion ringgit compared with the previous year. Last year the price of aluminium had a 40% surge and this year it will remain elevated if the situation between Russia and Ukraine is not brought under control, the company mandated.