KUALA LUMPUR (Aug 8): Aluminium products supplier and manufacturer AMS Advanced Material Bhd (KL:AMS), which was listed on Bursa Malaysia just over three months ago, has secured the necessary licences to commence its aluminium scrap business.

In a bourse filing, the group said the approvals allow it to begin collecting, processing and selling aluminium scrap materials through its wholly owned subsidiary, AMS Ecogreen Sdn Bhd.

Operations will be carried out at a facility in Johor with an initial processing capacity of about 17 tonnes per month. The group did not disclose in the filing which authority issued the licences.

The new business complements the group's existing aluminium supply and processing operations by leveraging its established customer base and industry network, said AMS managing director Keh Teng Yang.

"As more customers place greater emphasis on resource efficiency and sustainable manufacturing, we believe AMS is well-positioned to capture opportunities in the growing aluminium recycling market while creating an additional recurring revenue stream for the company," he said.

AMS trades semi-finished aluminium and copper products, processes semi-finished aluminium products, and supplies sheets, coils, plates, rods, bars and extrusion profiles to customers in industries including semiconductors, aerospace, automotive, engineering support services, consumer products and construction.

The group was listed on Bursa Malaysia on April 23, raising RM32.77 million from its initial public offering and another RM13.6 million for a private vehicle controlled by Keh.

AMS shares closed half a sen, or 1.05%, lower at 47 sen on Monday, giving the company a market capitalisation of RM284.65 million. The stock has climbed about 62% from its IPO price of 29 sen.