New plant to more than double ingot, billet output

MUKAH (Sarawak): Sarawak will have the capacity to produce 300,000 tonnes of high-quality ingots and billets a year when its second aluminium smeltering plant in the Samalaju Industrial Park begins operations in September.

The first plant, sited 38km from here, produces 120,000 tonnes a year.

The two plants are operated by Press Metal Sarawak Sdn Bhd, a subsidiary of Selangor-based Press Metal Bhd.

Group executive vice-president Koon Poh Min said that the company had invested RM3bil in the new plant.

He said the higher combined production would go a long way towards helping the company realise its goal to emerge as a global supplier of ingots and billets.

“With the new plant in operation, we will be the biggest in South-East Asia,” he told reporters after a visit to the plant organised by AZAM and RECODA.

AZAM is a non-profit, state-owned non-governmental organisation that facilitates the state government’s development initiatives. RECODA or Regional Corridor Development Authority is the development, management and promotion authority for SCORE or Sarawak Corridor of Renewable Energy.

Koon said the Mukah plant, which started production in August 2009, was a joint venture with Japanese industrial giant Sumitomo Corp.

“The RM1bil plant is the first and biggest aluminium smeltering plant in the country and the second biggest in South-East Asia,” he said.

He said both plants used Aluminium Corp of China’s technology, which is also used in 215 aluminium smelters worldwide.

Koon said the domestic market accounted for half the company’s current production, while the balance was exported to Japan, South Korea and the growing economies in the Asia-Pacific.

He said the Mukah plant, which employs 800 workers on three shifts, was in the midst of installing a third production line to produce a new product called “A356” used to manufacture alloy wheels.

The raw material for both plants was sourced from Australia, he said. — Bernama