KUALA LUMPUR (Sept 24): Winstar Capital Bhd (KL:WINSTAR) is still awaiting approvals from several agencies to fire up its third aluminium extrusion plant in Ijok, Selangor.

The Certificate of Completion and Compliance, along with approvals from the fire department and national electric utility, are still pending for the plant that, once operational, will more than double its capacity, said CEO Chua Boon Hong on Wednesday (Sept 24).

“We are pushing very hard to get it as soon as possible,” Chua told reporters at a briefing on the group’s first-half FY2025 results. “By right, we should be getting it by the end of this year [after months of delay].”

The Certificate of Completion and Compliance, also known as CCC, certifies that a building is fit for occupation and is a mandatory document in construction to verify that a structure has been built according to the approved plan and standards.

The RM14.5 million facility, built next to Winstar’s existing Ijok plant, is designed to house four new aluminium extrusion lines, lifting total annual capacity to 15,285 tonnes from about 6,705 tonnes currently.

Chua noted that the extrusion machines — already completed in China — are ready to be shipped but will only be installed once all compliance requirements are met. Installation is expected to take about a month, after which the lines can run at full capacity.

The new plant is funded by RM11.6 million in bank borrowings and internally generated funds. Chua said the company continues to engage authorities weekly to expedite approvals, as loan interest and depreciation costs are accruing even as the facility remains idle.

The expansion is central to the group’s strategy of capturing rising demand from the solar, construction and property sectors while reducing reliance on outsourced production.

For now, Winstar outsources some production to meet customer orders, prioritising sales even at lower margins. Once the new lines are commissioned, “we will directly convert all this aluminium trading to our production line,” which should improve profitability, Chua said.

The group is also positioning for potential subcontract work on a solar project in Port Dickson, Negeri Sembilan, being developed by its major shareholder Sunview Group Bhd (KL:SUNVIEW) in a consortium with Cypark Resources Bhd (KL:CYPARK).

“We are more than 50% confident we can secure the EPCC subcontract but it still needs to go through a tender and remain at arm’s length,” Chua said.

For the first half of FY2025, Winstar posted RM6.06 million in profit after tax, about 18% short of last year’s full-year earnings of RM7.41 million. Revenue stood at RM118.78 million, leaving the company needing roughly 41% more to surpass FY2024’s RM203.39 million total.

Chua remains optimistic that the new capacity will underpin growth once approvals are in hand. “We target this year to settle everything,” he said. “The sooner we can start, the faster we can capture the market opportunities ahead.”

Shares of Winstar Capital currently traded 1.5 sen or 2.91% higher at 53 sen, valuing the company at RM155.15 million. Year-to-date, its share price has slipped nearly 25% so far.