PRESS METAL BERHAD - The Koon Brothers led by Tan Sri Dato' Paul Koon Poh Keong
September 02, 2021
Bursa Malaysia listed Press Metal Aluminium Holdings Berhad is the largest aluminium producer in Southeast Asia. Press Metal’s core business is the manufacturing and trading of both upstream and downstream aluminium products.
The company is managed and controlled by the Koon brothers. Five Koon brothers are on the board of Press Metal which has 10 members, the balance of whom are independent directors. Koon Poh Ming is Executive Vice-Chairman, Tan Sri Dato' Paul Koon Poh Keong is Group CEO, and Dato’ Koon Poh Tat, Koon Poh Weng and Koon Poh Kong are Executive Directors. Tan Sri Paul Koon has been the Group CEO of Press Metal Berhad since the company was listed in 1993.
As at 3 May 2021 Tan Sri Paul Koon is directly interested in 22% of the issued shares of Press Metal Berhad and indirectly interested via his spouse of 14.51%. His brother, Koon Poh Ming has a direct interest of 1.50% but an indirect interest via his spouse of 7%. The controlling stake in the company is in their hands.
The business started from a rented factory with a small group of employees more than 35 years ago. Tan Sri Paul Koon said that the siblings admired how the Taiwanese industrialists made so much money in manufacturing and it was their dream to emulate their success. Within a few years the brothers saved enough money to buy up a competitor’s production equipment for their own factory.
In 1999 Press Metal began to export aluminium extrusion materials to the UK. In 2005 the Koon brothers expanded to Guangzhou, China with the establishment of an aluminium extrusions factory called Press Metal International Limited. It has a production capacity of 160,000 tonnes.
First Aluminium smelter in Malaysia
Press Metal moved upstream in 2008 to build the first aluminium smelter in Malaysia. The new plant was sited at Mukah in Sarawak and by 2013 a second facility was commissioned in Samalaju Industrial Park, also in Sarawak. With the completion of the Samalaju Phase 3 Smelter in 2020, Press Metal’s total smelting capacity will increase to over a million tonnes thus reinforcing its position as the largest Southeast Asia aluminium producer and a key global player in the aluminium industry.
Sumitomo Corporation of Japan is a 20% joint venture partner in Press Metal Bintulu Sdn Bhd which runs the Sarawak smelting operations. Press Metal and Sumitomo Corporation have also invested in the Worsley Alumina project in Western Australia. Bauxite is the raw material for the manufacture of aluminium products and this project has high quality bauxite.
Press Metal expanded to Indonesia when it bought a 25% equity stake in PT Bintan Alumina Indonesia in February 2020 for USD80.23 million cash. PT Bintan is building an alumina refinery plant which has total annual capacity of 2 million tonnes. This will stabilise alumina supply for Press Metal’s smelting operations.
For Financial year ended 31 December 2020, Press Metal registered a total revenue of Ringgit 7.54 billion and profit before tax of RM650 million.
China Hongqiao's expansion in Indonesia
China Hongqiao Group Limited, the world’s largest aluminium producer (6 million tonnes per annum) will be expanding its operations in West Kalimantan, Indonesia via its joint venture with PT Cita Mineral Investindo Tbk. The giant alumina plant is designed to have an annual capacity of 2 million metric tonnes.
Press Metal faces competition for the top spot in Southeast Asia.
- Press Metal Aluminium Holdings Berhad 2019 Annual Report. PMETAL - Annual Report & CG Report - 2020 | KLSE Screener
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- Sumitomo Corporation. News Release. 16 February 2016. https://www.sumitomocorp.com/en/jp/news/release/2015/group/20150216_1
- Sumitomo Corporation. 28 February 2019. Participation in Bauxite Mining and Alumina Refining Project in Australia | Sumitomo Corporation in Asia Oceania
- The Star. 6 July 2021. Success of smelter inspires expansion. China Hongqiao Group Co. Ltd will expand business in Indonesia.
- China Hongqiao Group Limited. Who we are. http://en.hongqiaochina.com/Investors_report.html
- Family Controlled Companies in Bursa Malaysia. Tan Li Shan. Published by Sparrow Publishing house. November 2016.