PETALING JAYA: Aluminium company Press Metal Bhd, with all of its smelters running at optimum levels and the adjacent Samalaju Port expected to be commissioned by July this year, is working to deliver higher earnings amid an improving aluminium market and weakening ringgit.

While already having relatively low production costs, the aluminium extrusion firm can also expect significant logistics cost reductions following the commissioning of the port, according to analysts.

“Although Press Metal’s successful aluminium smelters are in the first quartile of the global production cost curve, we see room for further cost optimisation from the sharing of common infrastructure and commissioning of Samalaju Port later this year which would decrease its logistics costs,” RHB Research Institute said yesterday.

Also, Press Metal benefits from the weakening ringgit, as a third of its production cost is expressed in the local currency while its revenue is denominated entirely in US dollar.

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