Silicon market slump prompts Press Metal to reposition PMBT towards aluminium alloys

Press Metal Aluminium Holdings Berhad (PMAH) has proposed to acquire an additional 35.6 per cent stake in PMB Technology Berhad (PMBT) for MYR 464.95 million (USD 109.9 million) in cash, a move that will raise its shareholding to about 58.8 per cent and make PMBT its subsidiary.

The proposed acquisition covers 664.22 million PMBT shares at MYR 0.70 (USD 0.17) apiece under a conditional share sale agreement signed on August 3.

The shares will be acquired from five members of the Koon family: Tan Sri Dato' Koon Poh Keong, Datuk Koon Poh Ming, Dato' Koon Poh Tat, Koon Poh Weng and Datuk Koon Poh Kong.

Upon completion of the transaction, PMAH's interest in PMBT will increase from its current 23.2 per cent to a controlling stake of 58.8 per cent.

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Acquisition supports business repositioning

PMAH said the acquisition presents a strategic opportunity to reposition PMBT's business as the global silicon metal market continues to face prolonged weakness.

PMBT has traditionally manufactured and distributed silicon metal and aluminium products, but falling silicon metal prices have significantly affected its financial performance over the past few years.

Silicon metal prices declined from USD 3.47 per pound in 2022 to USD 1.27 per pound as of July 24, 2026, contributing to PMBT's shift from a net profit attributable to shareholders of MYR 110.4 million (USD 26.1 million) in FY2022 to a net loss of MYR 12.8 million (USD 3.0 million) in FY2025.

PMAH said structural oversupply, softer downstream demand and continued weakness in the US dollar are expected to keep market conditions challenging and could continue to weigh on earnings.

Shift towards silicon-aluminium alloy production

Following the acquisition, the group plans to repurpose PMBT's operations by shifting production from silicon metal to silicon-aluminium alloy smelting, subject to approvals from PMBT's board, shareholders and the relevant regulatory authorities.

The company said the proposed transition would enable it to focus on higher-margin products backed by resilient demand from clean energy and industrial applications.

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