Malaysia's Press Metal Aluminium Holdings is set to expand its aluminium business by acquiring Leader Universal Aluminium Sdn Bhd (LUA). For this, the company has signed an agreement with HNG Capital Sdn Bhd for RM96 million.
Leader Universal Aluminium (LUA) is wholly-owned by HNG Capital, and is the largest aluminium and alloy rod producer in Malaysia and South East Asia. LUA manufactures high quality EC aluminium and alloy rods.
The company said that the proposed acquisition provides the group a platform equipped with technical expertise and additional capacity to expand into the aluminium rod market.
“The board is confident that the Proposed Acquisition will bring synergy to the Group’s aluminium business and will enhance the contribution to the Group’s value-added products,” the company said.
“Our rods capacity is currently at 48,000 tonnes per year and the additional 100,000 tonnes per year from this acquisition will immediately enhance our international presence in the aluminium rods market. We are confident that this synergistic acquisition of LUA when streamlined, will further elevate our contribution target for value-added products,” Koon said.
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