Press Metal: Impact of EU anti-dumping duties on China units is minimal

16/10/2020 12:00 - 15 total view

Press Metal Aluminium Holdings Bhd said the impact of the anti-dumping duties imposed by the European Commission (EC) on its China-based subsidiaries is minimal.  

“We understand that the market is concerned after learning that the EC has imposed a 38.2% duty each on Press Metal International Ltd and Press Metal International Technology Ltd’s products.  

“We have been monitoring this situation and would like to clarify that the current direct impact to our business is minimal,” the group said in a statement., citing a filing in the Official Journal of the EU, reported earlier today that the two Press Metal subsidiaries are among a list of China-based companies whose aluminium extrusions will be slapped with provisional anti-dumping duties in the European Union “to prevent further injury to the EU industry caused by dumped imports”. 

Press Metal said the duties imposed by the EC is only on extrusion products from its China subsidiaries to the EU. 

“Our Malaysian extrusion business is not affected by the duties,” it added. 

Press Metal said for its financial year ended Dec 31, 2019, extrusion revenue to the EU contributed about 4.6% to the group’s revenue and about 2.8% to its profit after tax.  

“We will be able to substitute any shortfall in our China extrusion facilities with other ready markets.  

“Aside from China, the Press Metal group also has extrusion facilities in Kapar, Malaysia which is able to cater for international orders,” it added. 

Press Metal’s share price closed up two sen or 0.39% at RM5.17 today, bringing the group a market capitalisation of RM20.88 billion. Some 3.14 million shares were traded.  

The stock has rebounded 81% since its March low of RM2.85.