KUALA LUMPUR (Feb 27): Press Metal Aluminium Holdings Bhd (KL:PMETAL) said on Thursday that it has signed a memorandum of understanding (MOU) with Bintulu Development Authority (BDA) for a proposed joint venture (JV) to set up a solar frame extrusions facility in Bintulu, Sarawak.

The proposed JV will leverage Press Metal’s aluminium expertise and BDA’s strategic initiatives to support the fast-growing solar energy market, both locally and internationally.

Under the terms of the MOU, which is valid for three years, a special purpose vehicle will be formed with BDA holding a 20% stake and Press Metal or its subsidiary holding the remaining 80% stake.

The total estimated investment for the project is RM600 million, comprising a 20% capital injection in proportion to the parties’ shareholdings and 80% external financing.

The solar frame extrusions facility, with an annual production capacity of 80,000 tonnes, is expected to commence operations by mid-2026, subject to regulatory approvals and final agreements.

Press Metal group chief executive officer Tan Sri Paul Koon stated that the collaboration with BDA represents a significant milestone in supporting Sarawak's vision of becoming a hub for renewable energy and sustainable industrial development, while also contributing to Malaysia's broader sustainability goals.

“We believe this project will strengthen Sarawak's industrial ecosystem by expanding the value chain, creating greater opportunities for value-added activities, and simultaneously generating meaningful employment while empowering local talent,” Koon said.

“This also aligns with Press Metal’s broader vision to expand our low-carbon aluminium applications, reinforcing our role in supporting global sustainability efforts and the energy transition,” he added.

Shares of Press Metal were up 25 sen or 5% at RM5.25 on Thursday, giving it a market capitalisation of RM43.26 billion.