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Tuesday, July 16, 2019

PMB Tech plans to invest RM300mil to double capacity

INVESTMENT
Monday, 15 Jul 2019
by jack wong

Press Metal Aluminium Holdings Bhd (Press Metal) is PMB Tech’s single largest shareholder with a stake of 27.43%. Press Metal owns aluminium smelting plants in Samalaju and Mukah with combined annual smelting capacity of 760,000 tonnes and extrusion capacity of 210,000 tonnes per annum.

KUCHING: PMB Technology Bhd (PMB Tech) is investing about RM300mil in a second phase manufacturing facility to double production capacity of metallic silicon to 72,000 tonnes per annum in Samalaju Industrial Park, Bintulu.

Construction works on the facility had commenced in April after PMB Tech signed a 25-year amended and restated power purchase agreement with Syarikat SESCO Bhd, a unit of Sarawak Energy Bhd, for a total of 104MW of electricity.

The first phase of nominal electrical load of 54MW is expected to be fully-drawn by year-end and the second phase of nominal electrical load of 50MW is expected to be fully drawn by end of next year, according to PMB Tech in a filing with Bursa Malaysia recently.

The second phase, which has achieved about 30% progress in construction work that comprised structural steel foundation a month ago, is expected to be completed and commissioned in fourth quarter of this year.

Phase one was completed last December.

Upon completion of the second phase, PMB Tech group’s total combined built-up area dedicated to metallic silicon business operation will be raised to 1.245 million sq ft from 630,000 sq ft.

The first phase of the facility, which has an annual production capacity of 36,000 tonnes, will cost about RM211mil inclusive of plant’s equipment and machinery.

It commenced commercial operations in March this year.

The production expansion is to meet the group’s existing and potential customers’ demand and enables the company to achieve economies of scale, according to PMB Tech senior independent non-executive director Loo Lean Hock.

PMB Tech is due to complete a second private placement in the current third quarter 2019) that would raise about RM95.8mil to partially fund the second phase.

From the proceeds, RM35.45mil will be utilised to pay for the facility’s construction and RM60mil for the purchase of plant equipment.

The company will borrow RM180mil from banks to meet the balance of the RM300mil capex for the second phase.

PMB Tech completed the first private placement that raised about RM45.4mil on June 19.

The money will be used for the group’s working capital.

Press Metal Aluminium Holdings Bhd (Press Metal) is PMB Tech’s single largest shareholder with a stake of 27.43%.

Press Metal owns aluminium smelting plants in Samalaju and Mukah with combined annual smelting capacity of 760,000 tonnes and extrusion capacity of 210,000 tonnes per annum.

The company is South-East Asia’s largest aluminium smelter.

According to PMB Tech, whose business and operation are related to aluminium, the group complements the business activities of Press Metal.

PMB Tech is primarily engaged in construction and fabrication as well as manufacturing and trading activities.

The company is involved in the design, fabricate and installation of aluminium curtain wall, cladding, skylight,facade works and the fabrication and installation of aluminium system form works.

Read more at https://www.thestar.com.my/business/business-news/2019/07/15/pmb-tech-plans-to-invest-rm300mil-to-double-capacity/#cqvrwFzculiR5Tpg.99

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