P.A. Resources Bhd, the low profile aluminium extruder in the previous three years has driven to the profitability path from a decade of losses the company went through. The Malaysian aluminium firm boosted it production in three times, while it transpired as a supplier to one of the largest global solar panel maker.
Moving progress towards the rise in demand for aluminium products globally, the company has scheduled several vital plans to conquer a larger market presence in the aluminium business.
Tan Sri Chan Kong Choy, PA Resources’ Non-executive Chairman, said: “The plan to further increase the company’s production capacity, grows its client base, automate its operations and position PA Resources as a company with strong research and development capabilities.”
Kong Choy, the former Transport Minister also envisages PA Resources as a high-quality yet cost-effective supplier for the aluminium extrusion industry, focusing to benefit from the strongly-growing renewable energy (RE) demand globally.
“The recently signed, approximately RM800mil contract from Nasdaq-listed First Solar Inc. to supply solar panel frames is a sign of confidence in our product quality and our ability to supply without interruption.”
“We would like to thank First Solar for having the faith in us,” he said.
Lately, PA Resources made public that its 100% subsidiary P. A. Extrusion (M) Sdn Bhd had secured the renewal for its solar panel frame supply contract with First Solar for the next two years; however, the preceding contract was received in 2018, valued at RM 600 million.
“We are very optimistic about the potential of the solar panel industry and want to be a part of it. Governments globally, including Malaysia, are encouraging RE adoption and this would surely further boost the demand for solar panels,” he said.
On 17th December’20, Chan Kong Choy C was appointed as the chairman. This followed the emergence of Chan as the top shareholder of PA Resources Bhd after having acquired a 10.18% stake via his wholly-owned vehicle, Interlink Matrix (M) Sdn Bhd.
Chan added: “PA Resources will embrace greater automation in its Ijok-based factory, to grow further and meet clients’ increasing demand”
“Currently, we are semi-automated. With greater automation, our production level will also go up by at least 20%,” he said.
“Currently, the factory, which has 10 production lines for extrusion, is running at 90% capacity. We plan to add additional lines in 2021,” he added.
The Chairman accepts that the current size of the factory, which occupies a 10-acre plot of land, and the electricity capacity of the factory that is nearing maximum usage, have restricted the company from expanding further.
Therefore, the company is looking out with multiple options that include land acquisition for the development of a new factory.
“Moving forward, we plan to increase our capital expenditure (CAPEX) compared to the past several years as we see huge potential in the industry.”
source https://www.alcircle.com/news/malaysian-aluminium-extruder-p-a-resources-plans-to-increase-production-capacity-66413
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