KUALA LUMPUR: PMB Technology Bhd
intends to construct and commission a manufacturing plant with an estimated cost of RM650mil to facilitate its diversification into silicon-aluminium alloy smelting.
The group said in a Bursa Malaysia filing the business repositioning was owing to the challenges it faced in the silicon metal industry amid persistent structural oversupply and subdued downstream demand.
According to PMB Tech, the proposed diversification will enable the group to broaden and diversify its earnings base, thereby reducing its reliance on the silicon metal business.
"Silicon metal prices remain depressed and are not expected to recover in the near term, which is expected to continue weighing on the Group’s profit margins, it said.
In the financial year ended Dec 31, 2025 (FY25), the group posted a net loss of RM12.83mil as compared to a net profit of RM44.75mil in FY23. In the six moths ended June 30, 2026, the group posted a net loss of RM48.16mil as compared to a net profit of RM4.66mil in the year-ago period.
Anticipating that the silicon-aluminium alloy business may in the future result in a diversion of 25% or more of the net assets of the group and/or contribute 25% or more of the net profits of the group, the board of directors will seek shareholders approval for the proposed diversification at an extraordinary general meeting to be convened.
