---
endpoint: analytics
pattern: Materials
status: done
latency_ms: 189423
conversation_id: 2ce70718-ca3e-4550-b0e5-a9e428b46d44
citations: 11
created: 2026-05-31 21:18:07Z
---

# Who are the key customers and suppliers of Press Metal?

# Press Metal — Key Customers and Suppliers

Press Metal Aluminium Holdings Berhad (PMAH MK) is one of the largest integrated aluminium smelters in Southeast Asia, with an ~1.08m mt primary smelting base (1.4m mt by 2027/28) located in Sarawak, Malaysia. Below is a synthesis of customer and supplier relationships from CLSA's coverage (analyst Zhen Ye Khoo), including a September 2024 plant tour at Bintulu and subsequent 3Q24/1Q25 results updates. The reports do not name individual contractual customers (Press Metal does not disclose offtaker identities); customer information is presented by product segment and geographic mix.

## 1. Customer Base — Geography and Product Segments

### Geographic Sales Mix (Smelting Output)

| Region | Share of Shipments |
|---|---|
| Asia Pacific | ~30% |
| Southeast Asia | ~30% |
| Western region (EU/US) | ~30% |

Press Metal's Bintulu smelter runs at ~97% utilisation on 24-hour operations, with goods shipped to customers in less than two weeks across all three regional segments [1]. The closest pricing benchmark for the group's premium realisations is the **Major Japan Port (MJP) premium**, with management indicating "wider exposure/sales mix to MJP premiums" — implying Japan/Asia-Pacific is the dominant pricing reference, though EU and US premiums also apply [3].

### Revenue by Product Segment (1Q25, RMm) [6]

| Segment | 1Q25 Revenue | % of Total |
|---|---|---|
| Smelting (primary aluminium ingots/slabs) | 3,223 | 82.7% |
| Extrusion | 529 | 13.6% |
| Refinery | 101 | 2.6% |
| Contracting & Others | 44 | 1.1% |
| **Total** | **3,897** | **100%** |

### Value-Added Product (VAP) Mix

Press Metal's value-added products — **wire rods, billets, and foundry alloys** cast on-site at Bintulu after molten aluminium is transported from the potroom — accounted for **46% of 1Q25 sales volume**, with management targeting **50% in 2025 and 70% by 2027** [5]. VAP mix is a margin enhancer relative to commodity ingot sales. From the September 2024 plant tour: molten aluminium is "transported via a tube below the pot to the casting house to form its required shapes or further processed to be made into value-added products" [2].

### End-Market Demand Drivers

While Press Metal does not disclose specific buyer names, the structural demand for its aluminium output is concentrated in:
- **Electric vehicles (EV)** — lightweighting demand
- **Solar** — aluminium frames and structural components
- **Infrastructure**

Per CLSA's read-through from Chalco (China's top aluminium producer), tight aluminium supply-demand is "driven by robust product demand from the EV, solar and infrastructure sectors (more than offsetting China's slower property sector demand)" [8].

### Subsidiary Customer/Revenue Line — Japan Alumina Associates

A consolidated subsidiary, **Japan Alumina Associates**, contributes ~RM400m/year in subsidiary revenue (separate from smelting and extrusion lines in CLSA's earnings build) [7].

## 2. Supplier Base — Raw Materials and Energy

Press Metal's three main input cost lines are **alumina (~37% of cost base in 25CL), energy (~25%), and carbon anodes (~14%)** — based on CLSA's 25CL cost estimates [7].

### Energy Supplier (largest competitive moat)

**Sarawak Energy Berhad** is Press Metal's sole electricity supplier under a long-term power purchase agreement (PPA):
- Press Metal's Sarawak plants consume **~30% (~1,700 MW) of total Sarawak Energy capacity** [2]
- Power is **hydropower-sourced**, qualifying its aluminium as "green" with energy costs ~30% below Peninsular Malaysia tariffs
- **Current PPA runs through 2028**; tariff is undisclosed publicly [2]
- **Baleh hydropower dam** is the future supply: Press Metal's planned ~30% smelting capacity expansion (to 1.4m mt by 2027/28) is contingent on Baleh completion, with new tariff tendering expected in 2026 [2][9]

### Alumina Suppliers (key raw material)

Alumina (smelting feedstock) is sourced through a combination of associate-controlled refineries and external purchase. Alumina cost is the single largest cost line at ~RM3.6–4.0bn/yr in CLSA's 24–26CL forecasts [7].

| Alumina source | Press Metal stake | Capacity / status |
|---|---|---|
| **PT Bintan Alumina Indonesia** (via 21.75–25% stake in **Nanshan Aluminium**, China A-share ticker 600219) | 21.75% (down from 25%) | Currently 2m tonnes; expanding to **3m t by end-3Q25** and **4m t by end-3Q26** — drives forecast step-up in associate profits in FY26/FY27 [4] |
| **PT Kalimantan Alumina Nusantara (PT KAN)** | 80% (Phase 1 in development) | Future alumina supply leverage for Press Metal — referenced as a coming capacity addition |

PT Bintan was responsible for the **+50% QoQ / +167% YoY surge in associate contribution in 3Q24** that offset higher spot alumina costs (alumina spiked to ~US$800/mt from US$504/mt) — i.e., the company is partially **hedged via its own alumina associate stake** during alumina price spikes [10][11]. Alumina is physically delivered via the **Samalaju Port**, with Press Metal having built its own **alumina pipe conveyor (completed 2018)** to transport alumina directly from port to plant silos [3].

### Carbon Anode Suppliers

Carbon anode is the third major input (~RM1.5bn/yr in 24-26CL). Anodes are consumed at one per pot per ~33 days for the electrolysis function [2]. CLSA tracks carbon anode prices in **RMB/tonne**, indicating Chinese suppliers are the principal source.

### Equipment & Engineering Suppliers

From the September 2024 plant tour: "most of the machineries and equipment are imported from China" and the Bintulu plant employs **150 Chinese engineers** out of a 5,000-person workforce (80% local, 20% foreign) [2].

## 3. Summary Table — Customers vs. Suppliers

| Type | Counterparty / Channel | Role / Detail |
|---|---|---|
| **Customer (geographic)** | Asia Pacific (~30%) | Includes Japan — MJP premium is the primary benchmark [1][3] |
| **Customer (geographic)** | Southeast Asia (~30%) | Regional industrial demand [1] |
| **Customer (geographic)** | Western region (~30%) | EU + US — EU premium benchmark applies [1] |
| **Customer (product)** | Smelting / primary ingot buyers | ~83% of revenue [6] |
| **Customer (product)** | Extrusion buyers | ~14% of revenue [6] |
| **Customer (product, embedded)** | VAP buyers (wire rod, billet, foundry alloys) | 46% of 1Q25 volume; target 70% by 2027 [5] |
| **End-market demand driver** | EV / solar / infrastructure / construction | Sectoral pull [8] |
| **Subsidiary revenue line** | Japan Alumina Associates | ~RM400m/yr [7] |
| **Supplier (energy)** | Sarawak Energy Berhad | Sole electricity supplier; ~1,700 MW; hydropower PPA through 2028 [2] |
| **Supplier (energy, future)** | Baleh hydropower (via Sarawak Energy) | Underpins post-2028 expansion [9] |
| **Supplier (alumina, associate)** | PT Bintan Alumina Indonesia (via 21.75% stake in Nanshan Aluminium, 600219 CH) | 2m → 4m t alumina capacity by 3Q26 [4] |
| **Supplier (alumina, future)** | PT Kalimantan Alumina Nusantara (Press Metal 80%) | Phase 1 in development |
| **Supplier (alumina, logistics)** | Samalaju Port + own pipe conveyor (built 2018) | Direct port-to-silo conveyance [3] |
| **Supplier (carbon anode)** | Chinese suppliers (prices benchmarked in RMB/tonne) | ~RM1.5bn/yr cost [7] |
| **Supplier (equipment)** | Chinese OEMs | Most machinery imported from China; 150 Chinese engineers on staff [2] |

## 4. Strategic Read

- **Customer concentration risk is low** — sales are roughly evenly split across three geographies, with no single offtaker disclosed. The shift toward VAP (target 70% by 2027) deepens customer stickiness as VAP requires bespoke specification (wire rod for cable, billet for extruders, foundry alloy for casters).
- **Supplier concentration is high on the energy side** (Sarawak Energy / Baleh hydropower), which is also its **structural cost advantage**. The 2028 PPA renewal is the key forward catalyst/risk — CLSA flags a potential **Sarawak aluminium tax** as a regulatory risk.
- **Vertical integration upstream is rising** — by doubling PT Bintan alumina capacity to 4m t by 3Q26 and ramping PT KAN (80%-owned), Press Metal is converting raw material exposure into associate earnings, which CLSA expects will drive a step-up in net profit to RM2.4bn by FY27CL [4].

---

**Sources**

[1] Press Metal - O-PF (Temporary operational hiccup) — CLSA, 11 Sep 2024 — 607939402LinqAlpha.PDF (geographic sales mix and VAP target)
[2] Press Metal - O-PF (Temporary operational hiccup) — CLSA, 11 Sep 2024 — 607939402LinqAlpha.PDF (Sarawak Energy, plant tour, equipment sourcing)
[3] Press Metal - O-PF (Temporary operational hiccup) — CLSA, 11 Sep 2024 — 607939402LinqAlpha.PDF (Samalaju Port alumina conveyor; MJP premium benchmark)
[4] Press Metal - O-PF (Moving ahead on expansion) — CLSA, 22 May 2025 — 607960312LinqAlpha.PDF (PT Bintan / Nanshan Aluminium 2m → 4m t alumina expansion)
[5] Press Metal - O-PF (Moving ahead on expansion) — CLSA, 22 May 2025 — 607960312LinqAlpha.PDF (VAP 46% in 1Q25, 50%/70% targets)
[6] Press Metal - O-PF (Moving ahead on expansion) — CLSA, 22 May 2025 — 607960312LinqAlpha.PDF (1QFY25 segment revenue table)
[7] Press Metal - O-PF (Tailwinds are blowing) — CLSA, 7 Oct 2024 — 607940734LinqAlpha.PDF (cost base build: alumina, anode, energy, logistics; Japan Alumina Associates RM400m)
[8] Press Metal - O-PF (Tailwinds are blowing) — CLSA, 7 Oct 2024 — 607940734LinqAlpha.PDF (Chalco read-through: EV/solar/infrastructure demand)
[9] Press Metal - O-PF (Temporary operational hiccup) — CLSA, 11 Sep 2024 — 607939402LinqAlpha.PDF (Baleh hydropower; expansion to 1.4m mt by 2027/28)
[10] Press Metal - O-PF (Outlook remains bright) — CLSA, 1 Dec 2024 — 607945803LinqAlpha.PDF (alumina price spike to US$800/mt; PT Bintan 25% stake)
[11] Press Metal - O-PF (Outlook remains bright) — CLSA, 1 Dec 2024 — 607945803LinqAlpha.PDF (3Q24 associate +50% QoQ / +167% YoY offsetting alumina cost)

## Citations

- [1] **607939402LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2024/09/607939402LinqAlpha.PDF>
- [2] **607939402LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2024/09/607939402LinqAlpha.PDF>
- [3] **607939402LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2024/09/607939402LinqAlpha.PDF>
- [4] **607960312LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607960312LinqAlpha.PDF>
- [5] **607960312LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607960312LinqAlpha.PDF>
- [6] **607960312LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607960312LinqAlpha.PDF>
- [7] **607940734LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2024/11/607940734LinqAlpha.PDF>
- [8] **607940734LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2024/11/607940734LinqAlpha.PDF>
- [9] **607939402LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2024/09/607939402LinqAlpha.PDF>
- [10] **607945803LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2024/11/607945803LinqAlpha.PDF>
- [11] **607945803LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2024/11/607945803LinqAlpha.PDF>

