By Chester Tay
Press Metal Aluminium Holdings Bhd. said that the 38% tariff imposed by the European Commission on products manufactured by its China subsidiaries will have minimal impact on its business.
The company's Malaysian extrusion business isn't affected by the duties, hence the current direct impact to Press Metal is minimal, the aluminum producer said in a stock exchange filing late Wednesday.
The duty has only been imposed on extrusion products from its Chinese subsidiaries--Press Metal International Ltd. and Press Metal International Technology Ltd., it said.
Press Metal said extrusion revenue to the European Union in 2019 accounted for approximately 4.6% of the group's revenue and about 2.8% to profit after tax.
The company said it would be able to substitute any shortfall in China extrusion facilities with other ready markets. Aside from China, Press Metal said it has extrusion facilities in Malaysia's state of Selangor, which is able to cater to international orders.
Write to Chester Tay at email@example.com
(END) Dow Jones Newswires