Malaysian tycoon Koon Poh Keong has announced a $330 million deal with Chinese billionaire Song Zuowen to swap stakes in their aluminum companies. Under the agreement, Koon’s Press Metal Alumunium Holdings will sell its 25% stake in aluminum oxide producer Bintan Alumina Indonesia in exchange for a 25.6% share in Song’s Nanshan Aluminium International Holdings. This deal will also see Nanshan Aluminium being spun off and listed separately in Hong Kong to raise funds for future expansion, with an IPO expected after the completion of the transaction by July 31.
Press Metal had acquired its stake in Bintan Alumina four years ago to secure a supply of alumina, an essential raw material for its smelting operations. Currently, Nanshan Aluminium holds a 72% indirect stake in the Indonesian company, which operates a 2-million-tonne alumina plant on Bintan Island, strategically located near Singapore. Shandong Nanshan, the parent company of Nanshan Aluminium, announced plans last year to invest $6 billion to expand the plant by 2028 in response to the growing demand for aluminum.
Koon Poh Keong and his siblings have a combined net worth of $5.3 billion, ranking them fifth on Malaysia’s 50 Richest List. The Koons founded Press Metal in 1986 with a capital of $50,000, and it has since become the largest integrated aluminum producer in Southeast Asia. On the other hand, Song Zuowen, with a net worth of $2.5 billion, controls the Nanshan Group, which has diverse interests beyond aluminum, including apparel, education, and airline. Shandong Nanshan Aluminium, the group’s main aluminum company, was listed on the Shanghai Stock Exchange in 1999.
The collaboration between Koon Poh Keong and Song Zuowen marks an important milestone in the aluminum industry, combining the strengths of their respective companies to capitalize on the growing market demand. The partnership will allow Press Metal to strengthen its position in the industry through the increased stake in Nanshan Aluminium, while providing Song’s company with access to new markets and opportunities for expansion. The decision to list Nanshan Aluminium separately in Hong Kong reflects a strategic move to raise capital for future projects and investments, ensuring sustainable growth for both parties.
The aluminum industry is experiencing a surge in demand driven by various factors, including the shift towards sustainable and lightweight materials in automotive and aerospace industries. This trend has created new opportunities for companies like Press Metal and Nanshan Aluminium to expand their operations and tap into emerging markets. By leveraging their combined resources and expertise, Koon and Song are poised to navigate the challenges and capitalize on the opportunities in the evolving aluminum market, solidifying their positions as key players in the global industry.
Overall, the $330 million deal between Koon Poh Keong and Song Zuowen signifies a strategic partnership that aims to drive innovation, growth, and sustainability in the aluminum sector. With Press Metal’s extensive experience in aluminum production and Nanshan Aluminium’s proven track record in the industry, the collaboration is expected to yield positive results for both companies. The upcoming listing of Nanshan Aluminium in Hong Kong is anticipated to attract investors and further boost the companies’ expansion plans, ultimately contributing to the continued success and development of the aluminum industry in the region and beyond.
