KUCHING: Press Metal Aluminium Holdings Bhd now owns an indirect equity interest of 80 per cent in joint venture company PT Kalimantan Alumina Nusantara (KAN).
This followed the completion of the final subscription tranche in KAN by its wholly owned subsidiary, Press Metal International Resources (HK) Ltd (PMIR), which subscribed for 20 million Series H shares for US$20 million (approximately RM82 million), according to a filing with Bursa Malaysia.
On Sept 18, 2024, Press Metal entered into two agreements with Indonesian partners PT Alakasa Alumina Refineri (AAR), PT Pinamika Sejahtera Mandiri (DSM) and PT Kalimantan Alumina Nusantara (KAN) to form a strategic joint venture to develop and operate an alumina refinery, power plant, jetty and supporting infrastructure in Sanggau, West Kalimantan, Indonesia.
The project involves the construction and operation of an alumina refinery with an annual production capacity of between one million and 1.2 million tonnes in Phase 1, with the potential to double capacity in subsequent phases, and a total estimated Phase 1 cost of US$750 million (approximately RM3.08 billion).
As part of the proposed joint venture, Press Metal and/or its affiliates will subscribe for a total of 240 million new ordinary shares in KAN across seven tranches, amounting to about US$240 million (approximately RM1.04 billion).
Press Metal, Southeast Asia’s largest integrated aluminium smelter, said the joint venture offers a unique opportunity to partner with AAR and DSM to drive sustainable long-term growth by expanding the group’s portfolio and future business activities while unlocking significant synergies that enhance overall value.
The joint venture aligns with the group’s ongoing strategy to maintain and strengthen its market-leading position in Southeast Asia, while enabling it to grow and expand its alumina business operations in a manner complementary to its smelting activities.
Alumina is a key raw material in aluminium smelting, and Press Metal said that securing a stable supply would allow the group to operate its smelting operations more effectively and efficiently while reducing reliance on third-party alumina suppliers and traders.
Press Metal currently operates smelting plants in Samalaju Industrial Park, Bintulu, and Mukah, with a combined annual production capacity of 1.08 million tonnes.
Earlier this month, Press Metal’s indirect subsidiary, PMB Aluminium Sdn Bhd, entered into a shareholders’ agreement with Bintulu Capital Sdn Bhd (BCSB) to establish a joint venture company, Press Metal PV (Sarawak) Sdn Bhd, which will build and operate a clean energy products extrusion plant along with supporting infrastructure in Bintulu. BCSB is a wholly owned subsidiary of the Bintulu Development Authority (BDA).
The project, which is estimated to cost RM600 million, will have an initial annual production capacity of 80,000 tonnes.
According to Press Metal, the proposed joint venture supports the group’s green aspirations and expands its clean energy product operations, complementing existing downstream activities, with the extrusion plant serving as a core facility for producing solar frames, strengthening integrated manufacturing capabilities and improving operational efficiency.
Meanwhile, substantial shareholder the Employees Provident Fund Board (EPF) has actively traded Press Metal shares as the stock rose to a multi-year high of RM7.02 on Thursday compared with its 52-week low of RM4.14.
On Dec 15, EPF disposed of 2,449,700 Press Metal shares and acquired 1,092,800 shares, reducing its total shareholding to about 500.74 million shares, or 6.077 per cent, according to the company’s latest filing with Bursa Malaysia, following its sale of 8.2 million shares and purchase of 2.9 million shares on Dec 12.
The pension fund emerged as a substantial shareholder after crossing the five per cent threshold with a holding of 413.3 million shares, or 5.016 per cent, on Jan 2, 2025.
