PETALING JAYA: Press Metal Aluminium Holdings Bhd, the largest aluminium producer in Southeast Asia has entered into a power purchase agreement (PPA) with Syarikat SESCO Bhd, a wholly owned subsidiary of Sarawak Energy Bhd, to secure more power for capacity expansion in Sarawak.
The PPA signed today provides long-term access of up to 500MW of electricity for a 15-year period with 300MW to commence first drawdown by October 2020 and the balance 200MW to be made available on a reasonable endeavour basis by SESCO.
With this, Press Metal plans to construct a proposed third aluminium smelter in Samalaju Industrial Park, Sarawak, which will potentially increase its total smelting capacity up to 1.08 million tonnes per annum upon full power drawdown, from the current 760,000 tonnes per annum. This will further enhance Press Metal’s position as the region’s largest integrated aluminium producer and a key global player in this industry.
Commenting on the power allocation and proposed expansion, group CEO Tan Sri Paul Koon said it is grateful for the opportunity to increase its participation into the Sarawak Corridor for Renewable Energy.
“With this, we will commence construction of the third smelter on our existing landbank at Samalaju Industrial Park, which will share common facilities with two of our other existing phases.”
He added that it has a proven track record of commissioning its smelters on schedule and is confident of repeating this for its new smelter. The total investment cost of the project will be similar to its previous phases and it may tap into the debt market to fund its expansion.
“Aluminium being the emerging metal of choice with its green characteristics has the potential to further replace traditional materials. The long-term prospects are promising as we foresee wider applications across multiple industries,” said Koon.