KUALA LUMPUR: Press Metal Bhd is targeting to spend about RM100mil of capital expenditures this year to come out with new aluminium products.

The largest aluminium smelter in South East Asia Group chief executive officer Datuk Paul Koon Poh Keong said the firm is targeting to produce higher margins products such as billets and tapping into automotive sector.

“We are seeing growing demand from automotive players, that are shifting into aluminium in vehicles production. In addition, China is also going to use more aluminium for its high speed rail projects,” he said.

Koon was speaking to reporters after the company’s shareholders meeting on Tuesday.

He said currently 30% of its capacity is producing “value added” aluminium products that can demand higher margins.

“Our target is to increase our production in ‘value added’ products to 50% of our production this year,” Koon said, adding that Press Metal is eyeing to expand its exports to the European market.

In addition, the firm is also going to utilise part of its capex in building conveyer at Samalaju Port.

“Currently, we are shipping our products through Bintulu port. The Samalaju port sits next to our plant, that would reduce our logistics cost in the long run,” Koon said.

The company had received its shareholders’ approval to undertake corporate exercise that would see the shares of Press Metal would be exchanged to a new holding company (NewCo).

The exercise would involve one NewCo share for every Press Metal share.

Once the share exchange completed, NewCo, which known as Press Metal Aluminium Holdings Bhd, wold be the new holding company of Press Metal and take over the listing status.

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