LB Aluminium to diversify into property development

PETALING JAYA: LB Aluminium Bhd, which is involved in the manufacturing, marketing and trading of aluminium extrusions, is planning to venture into property development to diversify its income stream as well as to reduce reliance on its manufacturing business.
The group told the stock exchange that approximately 75% of its current revenue is generated from domestic sales while the remaining 25% comes from export sales.
Its products are used in industries such as transport, construction, consumer goods, packaging as well as electrical engineering.
"The board anticipates that LB Aluminium's property development business may in future result in a diversion of 25% or more of the net assets of the group and/or may contribute 25% or more of the net profits of the group," said LB Aluminium in a Bursa Malaysia filing.
It noted that the proposed diversification will allow it to take advantage of investment opportunities and to reduce dependence on its manufacturing business, which is becoming increasingly competitive and subjected to the volatility of raw material prices as well as currency fluctuation as aluminium is imported and denominated in US dollars.
An EGM will be convened to seek shareholders' approval for the proposed diversification.
The stock was unchanged at 64.5 sen, with some 247,500 shares changing hands.