PRESS METAL BUYS 50PC STAKE IN JAA
Proposed acquisition to provide access to 5pc of annual production of Worsley alumina project, says CEO
PRESS Metal Aluminium Holdings Bhd, the largest aluminium smelter in Southeast Asia, is buying a 50 per cent stake in Japan Alumina Associates (Australia) Pty Ltd (JAA) for A$250 million (RM739 million).
JAA holds a 10 per cent stake in Worsley Alumina’s unincorporated joint venture, which owns and operates the Worsley alumina project.
Worsley is one of the world’s largest, longest life and lowest cost alumina producers.
In a statement yesterday, Press Metal chief executive officer Tan Sri Paul Koon said the proposed acquisition would provide an opportunity and access to five per cent of the annual production of the Worsley alumina project, which amounted to 230,000 tonnes per annum.
The acquisition, which was expected to be completed by the first quarter of next year, was an effective approach towards Press Metal’s long-term access to raw material with lower exposure and reliance on third-party suppliers, Koon added.
“This acquisition forms part of our strategies to strengthen operations vertically and partially secure long-term supply of alumina for our smelting operations with expectations of cost savings.
“The Worsley Alumina project represents a good entry into upstream alumina refinery for Press Metal. Through this proposed acquisition, Press Metal stands to gain some industrial knowledge in the alumina refinery business,” he said.
Koon said it was moving in to mitigate alumina price volatilities by securing the supply of certain volume of alumina obtained through JAA, instead of third parties.
“With the acquisition and our joint venture with Sunstone Development Co Ltd in China for the manufacturing of pre-baked carbon anodes (which is expected to be operational by year-end), Press Metal has moved to gain direct access to the most essential raw material and consumable for aluminium production, being alumina and carbon anodes,” he said.